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      Question

      Which of the following accounting concept is the same as

      the accrual concept?
      A Single entry System accounting Correct Answer Incorrect Answer
      B Mercantile accounting Correct Answer Incorrect Answer
      C Cash accounting Correct Answer Incorrect Answer
      D Hybrid Accounting Correct Answer Incorrect Answer
      E Corporate Accounting Correct Answer Incorrect Answer

      Solution

      Accrual accounting and mercantile accounting are the same concept, referring to the method of recording revenue and expenses when they are earned or incurred, regardless of when cash is exchanged. This approach provides a more accurate picture of a company's financial position. It is supported by the double entry accounting system. Within the double-entry bookkeeping process, any accrued expense is considered the liability of the firm and accrued revenue is considered business assets. 

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