Which of the Following Is True About Accrual-Basis Accounting

question 67

Multiple Choice

Which of the following is true about accrual-basis accounting?

• A) Income is generally larger with accrual-basis accounting.
• B) Accrual-basis accounting provides a better measure of performance.
• C) Accrual-basis accounting is not required by GAAP.
• D) Accrual-basis accounting and cash-basis accounting always produce the same results.

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Definitions:

Income

Monetary returns that come on a recurring basis, either from being employed or from putting money into investments.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, given the strategies of all other players in the game.

Payoff

An outcome of a decision or action, usually quantified in terms of profit, loss, or other benefits.

Strategy

A planned series of actions or tactics aimed at achieving specific goals or outcomes, often used in the context of business, military, or games.