The Primary Disadvantage of Accrual Accounting Is That

question 83

Multiple Choice

The primary disadvantage of accrual accounting is that

• A) it does not match revenues and expenses in the period in which they are incurred.
• B) it does not appropriately measure accounting profit.
• C) it does not recognize accounts receivable.
• D) it does not adequately show the actual cash flow position of the firm.

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Definitions:

Heart Rate

The number of heartbeats per unit of time, usually measured in beats per minute (bpm).

Muscle Contractions

The physiological process where muscles change length and tension in response to a stimulus, allowing movement of the body or internal organs.

Isoelectric Line

In electrocardiography, the baseline level of the chart when no electrical activity is detected in the heart.

ECG

Electrocardiogram, a test that records the electrical activity of the heart over a period of time, used to detect heart abnormalities.