Accrual Accounting Is Used Because

question 61

Multiple Choice

Accrual accounting is used because

• A) cash flows are considered less important.
• B) it provides a better indication of ability to generate cash flows than the cash basis.
• C) it recognizes revenues when cash is received and expenses when cash is paid.
• D) None of these answers are correct.

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Definitions:

Superior

Refers to something that is above average in quality or performance; often used to describe a higher rank or excellence.

Inferior

Describing something of lower quality, value, or importance in comparison to another.

Selective Perception

The process by which individuals perceive what they want to in media messages while ignoring opposing viewpoints.

Stereotype

A fixed, oversimplified image or idea of a particular type of person or thing.