Which of the following statements regarding the accrual basis of accounting is true?

A$)$ It records transactions only when cash is received or paid.

B$)$ It records revenue when it is earned and expenses when they are incurred, regardless of when cash is exchanged.

C$)$ It is primarily used by small businesses and individuals for tax purposes.

D$)$ It provides a more accurate representation of a company's financial position compared to the cash basis of accounting.