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.

---

Definitions:

Child And Dependent Care Credit

A tax credit in the U.S. for eligible expenses related to the care of a child or dependent, making it easier for caregivers to work or look for work.

Earned Income

Income derived from active participation in a business, including wages, salaries, tips, and other compensation.

Education Credit Deduction

A tax benefit that reduces the amount of income tax owed by individuals paying for higher education expenses.

Qualified Expenses

Costs recognized by the IRS for specific tax benefits, such as education-related expenses eligible for tax credits.