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:

Positive Reinforcement

A technique used in behavioral psychology to increase the likelihood of a desired behavior by following it with the addition of a reinforcing stimulus.

Punishment

A consequence that decreases the likelihood of a behavior being repeated, often used as a form of behavioral control.

Half-hearted Attempts

Efforts or actions carried out with minimal enthusiasm or commitment.

Learned Helplessness

A psychological condition in which a person has learned to believe they are powerless in a particular situation, often as a result of repeated failure or inability to control outcomes.