AndyNZ

A is not correct as cash is NOT required to change hands in order for an accrued exp/revenue to take place.
The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received). This method allows the current cash inflows/outflows to be combined with future expected cash inflows/outflows to give a more accurate picture of a company’s current financial condition.
Try and get a handle on the matching principle. Its useful to understand the difference between timing of exps vs timing of cash pymts.