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.

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Definitions:

Shopping Product

Goods that a consumer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style.

Convenience Product

A consumer item that is widely available and purchased frequently with minimal effort.

Unsought Product

A type of product that consumers typically do not think of buying until a need arises or they are made aware of it through advertising.

Convenience Products

Items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.