Question

The accounting basis that helps to measure and report revenues and expenses in a way that clearly reflects the ability of a company to generate value for its owners is referred to as: Multiple Choice Cash-basis. Accrual-basis. Profit-basis. Reporting-basis.

Answer 1

Answer:

Accrual-basis

Explanation:

Accrual accounting is the method of recording the revenue expenses transaction when these transactions incurred. It involves allowances, bad debts etc. It record the transaction on the basis of occurrence rather the payment. So accrual-basis helps to measure and report the revenue and expenses clearly.