Which of the Following Statements Is True of Accrual Basis

question 91

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.

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Definitions:

Sight

The ability to see; the visual perception of the environment.

Touch

A sensation perceived by the skin, allowing individuals to experience pressure, temperature, and pain.

Taste

Taste refers to the capability to perceive flavors through the sensory organs in the mouth, such as the taste buds.

Electrically Stimulated

The process of applying electrical impulses to a part of the body or brain to provoke a response or activity.