Which of the Following Statements Concerning Accrual-Basis Accounting Is Incorrect

question 126

Multiple Choice

Which of the following statements concerning accrual-basis accounting is incorrect?

• A) Accrual-basis accounting follows the revenue recognition principle.
• B) Accrual-basis accounting is the method required by generally accepted accounting principles.
• C) Accrual-basis accounting recognizes expenses when they are paid.
• D) Accrual-basis accounting follows the expense recognition principle.

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Definitions:

Ethical Standards

Accepted principles of right or good conduct in professional practices and individual behavior.

Rationalizer

An individual who offers seemingly reasonable explanations or excuses for behaviors or attitudes that might otherwise appear irrational or inappropriate.

Best Interests

A principle that emphasizes making decisions that are most beneficial for those involved, often used in legal and healthcare settings.

Ethics Mindfulness

The heightened awareness and thoughtful consideration of ethical standards and principles in decision-making processes.