Which Statement Is True Regarding Accounting Accruals

question 14

Multiple Choice

Which statement is true regarding accounting accruals?

• A)The nature of accrual accounting is that accruals will reverse when cash cycles are complete.
• B)Operating activities generally have relatively long cash cycles.
• C)Financing and investing activities generally have relatively short cash cycles.
• D)Errors or changes in accounting policy that affect non-current items like equipment will result in follow-through changes over a relatively short period.

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