Which of the Following Statements Is TRUE of Accrual Basis

question 170

Multiple Choice

Which of the following statements is TRUE of accrual basis accounting?

• A) Accrual basis accounting is required by Generally Accepted Accounting Principles (GAAP).
• B) Accrual basis accounting records expenses only when cash has been paid for them.
• C) Accrual basis accounting records revenue only when cash is received.
• D) Accrual basis accounting always results in greater net income than cash basis accounting.

---

Definitions:

Testicles

Male reproductive glands responsible for producing sperm and hormones, primarily testosterone.

Secondary Male Sex Characteristic

Physical traits in males that are not directly involved in reproduction, such as facial hair, deepening of the voice, and muscle development, which typically emerge during puberty.

Pubic Hair

is hair that grows in the genital area during puberty as a secondary sexual characteristic in humans.

Penis

The male external sex organ involved in sexual intercourse, urination, and the conveyance of semen.