Which of the Following Statements Is True of Accrual Basis

question 91

Multiple Choice

Which of the following statements is true of accrual basis accounting?

• A)Accrual basis accounting is required by Generally Accepted Accounting Principles (GAAP).
• B)Accrual basis accounting records expenses only when cash has been paid for them.
• C)Accrual basis accounting records revenue only when cash is received.
• D)Accrual basis accounting always results in greater net income than cash basis accounting.

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Definitions:

Global Teams

Teams that are composed of members from different geographical locations and often work across time zones via digital communication tools.

Virtual Teams

Collaborative groups that operate and interact primarily through electronic communications, overcoming geographical and temporal barriers.

Team Effectiveness

The degree to which a team achieves its goals, works well together, and produces desired outcomes.

Context

The circumstances, atmosphere, attitudes, and events surrounding a term, concept, or event that helps give it meaning.