The accounting principle upon which deferrals and accruals are based is a. price-level adjustment b. matching c. cost d. conservatism

b.matching

Explanation:

Deferrals and Accruals are based on matching principle of accounting. Matching principle requires that all the expenses to record in the same period when revenue is earned. The purpose of matching principle is to report relevant and accurate information in the accounting period. It brings all the revenue and related expenses together to report in the same period.

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