Accrual accounting differs from cash accounting because accrual accounting generally recognises:
Type: MCQ • Marks: 1
Accrual accounting differs from cash accounting because accrual accounting generally recognises:
Options
A. Transactions only when cash changes hands
B. Only audited transactions
C. Only capital expenditure
D. Economic events when revenue is earned or expenses are incurred
Explanation
Accrual accounting provides a broader picture of financial position by recognising economic events when they occur rather than only when cash is received or paid.
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UPSC Principal & Vice PrincipalManagement Finance Administration
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