Which of the Following Statements Does Not Properly Describe the Accrual

question 98

Multiple Choice

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

• A)Expenses are recognized when incurred regardless of the timing of cash flows.
• B)Revenues are recognized when incurred regardless of the timing of cash flows.
• C)Generally accepted accounting principles require use of the accrual basis.
• D)It should not be used when providing financial statements to external decision makers.

---

Definitions:

Counterculture

A group within society that openly rejects or actively opposes society’s values and norms.

Subculture

A culture within a broader culture, with its own distinct values, practices, and beliefs, often emerging around shared interests or identities.

Symbolic Culture

A component of culture that is expressed through symbols, language, and nonmaterial culture, embodying the values and norms of a society.

Ideal Culture

The norms, values, and patterns of behavior that members of a society believe should be observed in principle.