Which of the Following Statements About the Accrual Method of Accounting

question 104

Multiple Choice

Which of the following statements about the accrual method of accounting is false?

• A) The accrual method is the required method of accounting under GAAP.
• B) Every publicly held corporation must use the accrual method of accounting to prepare financial statements.
• C) The accrual method of accounting under GAAP and the accrual method of accounting for computing taxable income are identical.
• D) Corporations with more than $25 million average annual gross receipts are required to use the accrual method to compute taxable income.

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Definitions:

Psychophysiological Disorder

A physical illness that is thought to be caused or exacerbated by mental factors such as stress.

Hispanic American

Refers to Americans of Spanish-speaking heritage from Latin America, including those with origins in Spain.

Non-Hispanic White

A demographic group in the United States defined by the absence of Hispanic heritage, often used in studies of ethnic and racial health disparities.

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Illness of the heart caused by a blockage in the coronary arteries.