BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The revenue recognition principle, a feature of accrual accounting, requires that revenues are recognized on the income statement in the period when realized and earned-not necessarily when cash is received.

Detailed explanation-2: -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.

Detailed explanation-3: -Accrual is a fundamental accounting assumption that the amount of revenue or expense recognized in a period should equal the amount of revenue or cost incurred during that period. The accrual principle is an essential accounting assumption because it recognises all revenues and expenses over time.

Detailed explanation-4: -Accrual-Basis Accounting Revenues are recognized when services performed, even if cash was not received. Expenses are recognized when incurred, even if cash was not paid.

Detailed explanation-5: -The accrual basis of accounting recognizes revenues when earned (a product is sold or a service has been performed), regardless of when cash is received. Expenses are recognized as incurred, whether or not cash has been paid out.