Accrual accounting is an accounting system in which the measurement of income is based on cash receipts and cash disbursements?
False.
Accrual accounting is an accounting system in which the measurement of income is based on the recognition of revenues when they are earned and expenses when they are incurred, rather than when the cash is received or paid. It follows the matching principle, which aims to match revenues and expenses in the same accounting period to provide a more accurate representation of the financial position and performance of a company.