JAMB Accounts Principles of Accounts 2020 Paper

Concept:Accrual accounting records income and expenses when earned or incurred, not when cash changes hands.Explanation:Cash accounting records transactions only when cash is received or paid.Accrual accounting recognizes credit sales as debtors and unpaid expenses as creditors.Thus, it is the recognition of debtors and creditors that distinguishes it from cash accounting.Answer:D. debtors and creditors