Which of the Following Statements Concerning Accrual-Basis Accounting Is Incorrect

question 278

Multiple Choice

Which of the following statements concerning accrual-basis accounting is incorrect?

• A) Accrual-basis accounting follows the revenue recognition principle.
• B) Accrual-basis accounting is the method required by IFRS.
• C) Accrual-basis accounting recognizes expenses when they are paid.
• D) Accrual-basis accounting follows the expense recognition principle.

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Definitions:

Rigid

Characterized by inflexibility or the inability to adapt to new situations, often leading to inefficiency or failure in changing environments.

Unwieldy

Difficult to handle, control, or manage due to size, complexity, or awkwardness.

Mechanistic Structures

Organizational structures characterized by rigid hierarchies, strict rules, and centralized decision-making, typical in stable environments.