Which of the Following Is NOT True Regarding Accrual-Basis Accounting

question 19

Multiple Choice

Which of the following is NOT true regarding accrual-basis accounting?

• A) A company records events that change its financial statements in the periods in which the events occur.
• B) Revenues and expenses are recognized in the periods in which the company receives or pays cash.
• C) It has greater potential to depict meaningful trends in revenues and expenses.
• D) Revenues and expenses can be more easily related to the economic environment of the period in which they occurred.

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Definitions:

Exchange

The act of giving something to someone and receiving something else in return.

Inspirational Appeals

Techniques used to motivate others by appealing to their values, hopes, and aspirations.

Influencing Tactics

Strategies or approaches used to persuade or convince others to follow a course of action or to adopt a particular viewpoint.

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The state of being dedicated or bound to a cause, activity, or goal.