Which of the Following Statements Is True of Accrual Basis

question 57

Multiple Choice

Which of the following statements is true of accrual basis accounting?

• A)Accrual basis accounting is allowed by Generally Accepted Accounting Principles (GAAP).
• B)Accrual basis accounting records expenses only when cash has been paid for them.
• C)Accrual basis accounting records revenue only when cash is received.
• D)It always results in greater net income than cash basis accounting.