Which of the Following Is Not a Characteristic of the Accrual

question 21

Multiple Choice

Which of the following is not a characteristic of the accrual basis of accounting?

• A) revenues and expenses are reported in the period in which cash is received or paid
• B) revenues are reported when services have been performed or products have been delivered to customers
• C) accrual basis of accounting supports the matching concept
• D) expenses are reported in the same period as the revenues to which they relate

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Definitions:

Quota

A predetermined limit on the amount of goods that can be imported or produced within a set period.

Mentally Incapacitated

A condition in which a person is unable to make rational decisions or manage their own affairs due to mental deficits or illness.

Agency Relationships

A legal arrangement in which one party (the agent) agrees to act on behalf of another (the principal) in dealings with third parties.

Maintenance Agreement

A contract in which one party agrees to maintain an asset owned by another party, often including repair and upkeep services.