Which Statement Is Correct

question 113

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 expense recognition 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.

---

Definitions:

Democratic Nations

Countries that operate under a form of government in which the people have the authority to deliberate and decide legislation, or to choose governing officials to do so.

Social Preconditions

Refers to societal factors or conditions that must exist before a particular development or change can occur.

Political Revolution

A fundamental and sudden change in political power and political organization, which is typically brought about by mass movements and sometimes leads to profound changes in culture and society.

William Wallace

A Scottish knight who became one of the main leaders during the First War of Scottish Independence against England in the late 13th and early 14th centuries.