Which of the Following Is Not a Characteristic of the Accrual

question 134

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) The 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:

Fossilized Deposits

Organic or inorganic remains of organisms that have been preserved over geological time, usually in sedimentary rocks.

Hard Outer Shell

A protective external layer found in some animals, including crustaceans and certain insects, which offers defense against predators and environmental conditions.

Amoeboid Cells

Cells that move or feed by forming extensions of their cytoplasm, known as pseudopodia.

Rhizarians

A diverse supergroup of amoeboid cells that often have hard outer shells, called tests, through which cytoplasmic projections extend; include forams, actinopods, and certain shell-less amoebas.