Which of the Following Is Not a Characteristic of the Accrual

question 134

Multiple Choice

Which of the following is not a characteristic of the accrual basis of accounting?

• A) Revenues and expenses are reported in the period in which cash is received or paid.
• B) Revenues are reported on the income statement in the period in which they are earned.
• C) The accrual basis of accounting supports the matching concept.
• D) Expenses are reported in the same period as the revenues to which they relate.

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Definitions:

Canadian Accounting Standards

The set of accounting principles that guide financial reporting and practices in Canada, ensuring consistency and transparency across financial statements.

Publicly Accountable Enterprises

Organizations that have a duty to report financial information to the public, often because their debt or equity instruments are traded in a public market.

IFRS

International Financial Reporting Standards; a set of global accounting standards designed to ensure consistency and transparency in financial reporting.

Code-Law Countries

Nations that base their legal systems on a comprehensive, written set of laws, as opposed to case law or common law systems.