How does accrual accounting differ from cash basis accounting in terms of revenue recognition?

• A. Accrual accounting recognizes revenue when it is earned, while cash basis recognizes revenue when cash is received.
• B. Both recognize revenue when cash is received.
• C. Both recognize revenue when it is earned.
• D. Accrual accounting recognizes revenue when cash is received, while cash basis recognizes revenue when it is earned.

Answer: (A)