Which of the Following Statements About Accrual Basis Accounting Is

question 199

Multiple Choice

Which of the following statements about accrual basis accounting is correct?

• A) If a company uses accrual basis accounting, the company should not record revenue until payments is actually received.
• B) If a company uses accrual basis accounting, the company should, the company should record expenses in the same period as the revenues they generate.
• C) IFRS does not allow accrual basis accounting for external reporting of income.
• D) The items reported on the income statement continue to have an impact beyond the current period, whereas the items reported on the balance sheet impact just the current period.

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