which is best explaination for the accrual basis of accounting a.None of the options reflect the accrual basis of accounting. b.Thompson Consulting Limited recognises revenue in its accounts when the services are fully completed for the client, even if the client has not yet made payment for the services rendered. c. Hair Fashion Limited only records an expense for hair products when the cash payment is made to the supplier. d.Steel Hardware Limited records revenue only when cash is received from the credit sales made to customers.

The special feature of accrual basis of accounting is *a. recording expenses only when cash is paidb. recording revenues only when cash is receivedc. recording adjustments only if it has a favorable effect on the company’s incomed. recording revenues and expenses when they are earned and incurred regardless of when cash is received or paid.

Accrual basis of accounting is a system where:Question 5Answera.The receipts are recorded when cash is not received while expenditures are recorded only when cash is paidb.The receipts are recorded only when cash is received while expenditures are recorded only when cash is paidc.Revenue is recorded when there is commitment and expenditure recorded when services is received.d.Revenue recorded when earned and expenditures recorded when benefits are received

Under the accrual basis of accounting, revenues are reported in the accounting period when the

Accrual basis of accounting makes sure that expenses are matched with the revenues earned in the same accounting period.Select one:TrueFalse

Accounting is only relevant to profit-oriented organisations. Question 1 Answer True False