Which of the Following Is a CORRECT Statement About the Two

question 150

Multiple Choice

Which of the following is a CORRECT statement about the two bases of accounting?

• A)Cash-basis accounting records revenues when they are earned.
• B)Cash-basis accounting records expenses only at the end of the month.
• C)GAAP requires accrual accounting.
• D)Only the largest companies in the United States use accrual accounting.

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Definitions:

Body Cavity

A hollow space within the body that houses vital organs and allows for their expansion, movement, and protection.

Gastrovascular System

A simple digestive system that has a single opening through which food is ingested and waste material is excreted, found in certain invertebrates like cnidarians and flatworms.

Flatworm

Bilaterally symmetrical invertebrate with organs but no body cavity; for example, a planarian or tapeworm.

Simple Diffusion

The movement of molecules from an area of higher concentration to an area of lower concentration without the need for energy or a carrier.