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:

Formal Organizational Structure

The officially designated arrangement of roles, responsibilities, and relationships within an organization.

Communication Channels

The means through which information is transmitted from one party to another, including verbal, non-verbal, and electronic methods.

Formal Structures

The officially designated channels of communication and hierarchies within an organization that dictate how tasks are assigned and coordinated.

Vertical Layers

The hierarchical levels or stages within an organization or system, usually indicating positions of authority.