Which of the Following Is Not True About Accrual Basis

question 56

Multiple Choice

Which of the following is not true about accrual basis accounting?

• A) The revenue principle is applied.
• B) The matching principle is applied.
• C) Required for external accounting reports.
• D) Requires the timing of cash receipts be in the same period as revenues recognized.

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Definitions:

Locus of Causality

Refers to where individuals attribute the cause of events, either internally (to themselves) or externally (to the situation or others).

Correspondent Inference

A theory suggesting that people make inferences about a person's dispositional attributes based on observed behaviors, especially when those behaviors have socially unexpected consequences.

Stability of Causation

A principle suggesting that causal relationships remain consistent across different contexts and times.

Fixed Versus Incremental Attribution

Theories that explain how people perceive their ability to change (incremental) versus viewing their abilities as static (fixed).