The Primary Difference Between Accrual-Basis and Cash-Basis Accounting Is

question 66

Multiple Choice

The primary difference between accrual-basis and cash-basis accounting is:

• A)The timing of when revenues and expenses are recorded.
• B)Cash-basis accounting is allowed for financial reporting purposes but not accrual-basis accounting.
• C)Accrual-basis accounting violates both the revenue recognition and matching principles.
• D)Adjusting entries are only a necessary part of cash-basis accounting.

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