Which Statement Is Correct

question 1

Multiple Choice

Which statement is correct?

• A) As long as a company consistently uses the cash basis of accounting, generally accepted accounting principles allow its use.
• B) The use of the cash basis of accounting violates both the revenue recognition and matching principles.
• C) The cash basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received.
• D) As long as management is ethical, there are no problems with using the cash basis of accounting.