BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Accrual basis accounting recognizes business revenue and matching expenses when they are generated-not when money actually changes hands. This means companies record revenue when it is earned, not when the company collects the money.

Detailed explanation-2: -Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs vs. when payment is received or made. The method follows the matching principle, which says that revenues and expenses should be recognized in the same period.

Detailed explanation-3: -Under this method, revenue is accounted for when it is earned. Unlike the cash method, the accrual method records revenue when a product or service is delivered to a customer with the expectation that money will be paid in the future.

Detailed explanation-4: -The accrual basis of accounting is the concept of recording revenues when earned and expenses as incurred. The use of this approach also impacts the balance sheet, where receivables or payables may be recorded even in the absence of an associated cash receipt or cash payment, respectively.