Which of the Following Is Not a Characteristic of the Accrual

question 32

Multiple Choice

Which of the following is not a characteristic of the accrual basis of accounting?

• A) revenues and expenses are reported in the period in which cash is received or paid
• B) revenues are reported on the income statement in the period in which they are earned
• C) accrual basis of accounting supports the matching concept
• D) expenses are reported in the same period as the revenues to which they relate

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Definitions:

International Trade

The exchange of goods, services, and capital across international borders, driven by comparative advantages and benefiting parties through increased choice and efficiency.

Autarky Price

The price of a good in a country under the condition of autarky, where the country does not engage in international trade.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to undertake one action over another.

Computer

An electronic device capable of performing calculations and tasks according to a set of instructions called programs.