Which of the Following Is a Drawback of Using an Accrual

question 66

Multiple Choice

Which of the following is a drawback of using an accrual accounting system?

• A) It greatly reduces the demand on bookkeeping.
• B) It is only appropriate for cash-based businesses.
• C) It may be misleading with respect to understanding a company's actual cash position.
• D) It can be used to affect tax bills.
• E) It can distort measure of the profitability of a business.

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Definitions:

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