Which of the Following Statements Does Not Properly Describe the Accrual

question 51

Multiple Choice

Which of the following statements does not properly describe the accrual basis of accounting?

• A)Expenses are recognized when incurred in generating revenues regardless of the timing of cash flows.
• B)Revenues are recognized when the company transfers promised goods or services to customers regardless of the timing of cash flows.
• C)Generally accepted accounting principles require use of the accrual basis.
• D)Accrual accounting should not be used when providing financial statements to external decision makers.

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Definitions:

Larger Towns

Urban areas that are bigger than villages and small towns, usually with a greater range of services and amenities.

Small Adults

Adults who are significantly below average in physical stature or size, which could be due to genetic, nutritional, or health-related factors.

Harshly

In a manner that is severe, cruel, or excessively critical, often resulting in discomfort or resentment.

Kindness and Love

Human qualities that involve being friendly, generous, and considerate, along with deep affection and care for others.