Which Statement Is Correct

question 18

Multiple Choice

Which statement is correct?

• A)As long as a company consistently uses the cash basis of accounting, generally accepted accounting principles allow its use.
• B)The use of the cash basis of accounting violates both the revenue recognition and expense recognition principles.
• C)The cash basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received.
• D)As long as management is ethical, there are no problems with using the cash basis of accounting.

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