Accrual accounting is usually associated with

A) revenue recognition in the period of sale
B) revenue recognition prior to the period of sale
C) revenue recognition after the period of sale
D) revenue recognition delayed until a future event occurs

Accrual Accounting

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash transactions occur.

Revenue Recognition

The accounting principle that dictates the specific conditions under which revenue is recognized and recorded, typically when the earning process is judged to be complete and the revenue is measurable.

Period Of Sale

The time frame during which a sale transaction is completed, from the offer to the transfer of ownership.