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

The statement is True.

Explanation:

Accrual basis of accounting is a fundamental principle in financial reporting that ensures expenses are recognized in the period they are incurred, regardless of when cash is actually paid. This matching concept is crucial because it aligns expenses with the revenues they help generate. By doing so, it provides a more accurate picture of a company's financial performance over a given period.

For instance, if a company provides services in December but doesn’t receive payment until January, under accrual accounting, the revenue is recorded in December, and any related expenses incurred to provide those services are also recorded in December. This allows stakeholders to see the true financial activity and profitability of the company within that accounting period, rather than relying solely on cash transactions.

Thus, the statement accurately describes one of the core tenets of accrual accounting.