Accrual-Basis Accounting Is Allowed Under

question 6

Multiple Choice

Accrual-basis accounting is allowed under

• A) GAAP but not IFRS.
• B) IFRS but not GAAP.
• C) both IFRS and GAAP.
• D) neither IFRS nor GAAP.

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Definitions:

Legal Contract

An agreement creating obligations enforceable by law.

Minor Children

Individuals under the age of majority, typically under 18, not having the full legal rights of adults.

Void

Having no legal force or effect; null and totally ineffective.

Breach of Contract

The omission of performing any clause of an agreement, whether written or orally communicated, without a defensible legal excuse.