What principle does accrual basis of accounting emphasize?

The accrual basis of accounting emphasizes recording revenues and expenses in the period they occur, regardless of when cash is actually exchanged. This principle ensures that financial statements reflect the true economic activity during a specific period, providing a more accurate picture of a company's financial position.

Under this method, revenue is recognized when it is earned (typically when goods or services are provided), and expenses are recognized when they are incurred (when the related goods or services are received), not necessarily when payment is made or received. This approach aligns with the matching principle, which states that expenses should be matched with related revenues in the same period, enhancing financial statements' relevance and reliability.

In contrast, options focusing on cash transactions or delaying recognition of revenues and expenses do not align with the fundamental principles behind accrual accounting, which aims to provide a more comprehensive view of a company's financial activities.