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

question 102

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.

Distinguish between extrinsic and intrinsic rewards and their impact on employee motivation.

Appreciate the complexities and challenges involved in designing an optimal reward system.

Know the initial steps and strategies in formulating a compensation plan.

Understand the role of compensation in stakeholders' perspectives, including shareholders.