Which of the following is true of accrual accounting?

Which of the following is true of accrual accounting?
A . Neither the recognition of revenue nor the recording of expense necessarily involves the receipt or payment of cash
B . It rests on a primary guiding principle, which is recognition
C . The recognition of revenue involves the receipt or payment of cash, while the recording of expense does not
D . It entails recording income or expenditure only when money comes into or leaves the company

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Answer: A