Which of the Following Is Not a Characteristic of the Accrual

question 21

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 when services have been performed or products have been delivered to customers
• 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:

Inflation Rate

The rate, shown as a percentage, at which prices for services and goods overall are climbing, causing the buying power to decrease.

American Farms

Agricultural enterprises operating in the United States, focusing on the production of food, feed, fiber, and other products.

Small Farmer

An individual who manages and operates a small agricultural plot or farm, typically emphasizing sustainability and self-sufficiency.

Exports

Exports are goods or services produced in one country and sold to buyers in another country, contributing to a country's economic output.