Which of the Following Is a CORRECT Statement About the Different

question 63

Multiple Choice

Which of the following is a CORRECT statement about the different accounting methods?

• A)Cash-basis accounting records revenues when they are earned.
• B)Cash-basis accounting records expenses only at the end of the month.
• C)GAAP requires accrual-basis accounting.
• D)The largest companies in the United States use cash-basis accounting.

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Definitions:

Interest Rate

Interest Rate is the charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Compounded Semi-Annually

Compounded semi-annually refers to the process where interest on an investment or loan is calculated and added to the principal balance twice a year.

35 Years

A period of thirty-five years, often referred to in the context of long-term investments or life events planning.

Invested

To distribute financial resources aiming for potential benefits down the line, including income or profits.