What Is the Primary Objective of Accrual Accounting

question 29

Multiple Choice

What is the primary objective of accrual accounting?

• A)To measure the cash flow of an entity.
• B)To measure economic performance of an entity.
• C)To predict future cash flows of an entity.
• D)To predict future economic performance of an entity.

---

Definitions:

Consciousness

The quality or state of being aware of an external object or something within oneself.

Cocktail-Party Effect

The ability of individuals to focus their attention on a single speaker among a noise of conversations and background sounds.

Perceptual Attention

The cognitive process that allows an individual to concentrate on important sensory information while ignoring other irrelevant data.

Selectivity

The process or action of specifically choosing or preferring one option over others, often based on distinct criteria or preferences.