Answer:
(D) That the revenue be realized or realizable, and earned
Step-by-step explanation:
The accrual basis of accounting is the accounting method where the revenues are recorded and recognized when they are earned not when the cash for these revenues is received.
It is necessary because every revenue or every expense must be recognized in the period they occurred, it means we have to match revenues with expenses in the Income Statement.
The opposite of this is the cash method, which means that revenues and expenses are recognized when they are received or paid.
Hope it helps