Which of the Following Is a Correct Statement About the Methods

question 137

Multiple Choice

Which of the following is a correct statement about the methods of accounting?

• 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 accounting.
• D) Accrual accounting records an expense when cash is paid.

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Definitions:

Alternative Hypothesis

The hypothesis that proposes a specific relationship between variables, contrary to the null hypothesis.

Directional Hypothesis

A hypothesis that specifies the direction of the expected difference or relationship between two variables.

Null Hypothesis

A statement in statistics that there is no significant difference or effect, and any observed difference is due to sampling or experimental error.

Alternative Hypothesis

A statistical hypothesis that suggests a difference or effect, opposite to the null hypothesis.