Which of the Following Statements About the Accrual Method of Accounting

question 91

Multiple Choice

Which of the following statements about the accrual method of accounting is false?

• A)The accrual method is the required method of accounting under GAAP.
• B)Every publicly held corporation must use the accrual method of accounting to prepare financial statements.
• C)The accrual method of accounting under GAAP and the accrual method of accounting for computing taxable income are identical.
• D)Corporations with more than $5 million average annual gross receipts are required to use the accrual method to compute taxable income.

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Definitions:

Elderly

Individuals, typically of advanced age, often considered to be past the common retirement age, who may face distinct social and health challenges.

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A society ruled by elderly people.

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The study of the development, structure, and functioning of human society, as well as the systematic study of social problems.