The Primary Disadvantage of Accrual Accounting Is That

question 24

Multiple Choice

The primary disadvantage of accrual accounting is that:

• A) it does not match revenues and expenses in the period in which they are incurred.
• B) it does not appropriately measure accounting profit.
• C) it does not recognize the actual exchange of cash.
• D) it does not adequately show the actual cash flow position of the firm.

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Definitions:

Science

The systematic study of the structure and behavior of the physical and natural world through observation and experiment.

Informed Consent

A process ensuring that a participant is fully aware of the potential risks and benefits involved in a procedure or experiment before agreeing to partake.

Research Ethics

The moral principles that guide the conduct of scientific research, focusing on issues such as integrity, respect, and responsibility.

Experimental Validity

The extent to which a study accurately reflects or assesses the specific concept that the researcher is attempting to measure.