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:

Inferences

Conclusions or deductions made based on evidence and reasoning, rather than direct observations, often used in research to derive findings from data.

Experimental Expectations

Anticipated results or outcomes of a scientific experiment based on hypotheses and prior knowledge.

Construct Validity

The degree to which a test measures what it claims to be measuring, reflecting the accuracy of an operationalization of a theoretical construct.

Regression Toward

A statistical phenomenon where extreme values in data are likely to be followed by, or associated with, less extreme values.