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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Definitions:

President Eisenhower

Dwight D. Eisenhower was the 34th President of the United States, serving from 1953 to 1961, known for his leadership during World War II as a five-star general and his role in domestic infrastructure expansion, notably the Interstate Highway System.

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Wheeled vehicles powered by engines or electric motors, used for transportation, such as cars, motorcycles, and trucks.

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The process and industry involved in designing, manufacturing, and selling motor vehicles.