Which of the Following Statements About Accrual Basis Accounting Is

question 159

Multiple Choice

Which of the following statements about accrual basis accounting is not correct?

• A)It uses the revenue recognition principle.
• B)It uses the expense recognition principle.
• C)It is required for external accounting reports.
• D)It requires the timing of cash receipts be in the same period as revenues are recognized.

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Definitions:

Flashbacks

Sudden and intense memories of past experiences, often traumatic, that invade the present consciousness, making the person feel as if they're reliving the past.

Narcotic

A drug affecting mood or behavior and sold for nonmedical purposes, often used to induce sleep or relieve pain.

Heroin

An opioid drug derived from morphine, highly addictive, and illegal, often used for its euphoric effects.

Cocaine

A powerful and addictive stimulant drug derived from the coca plant, which directly affects the brain’s reward pathways.