Which of the Following Statements Concerning Accrual Accounting Is Correct

question 57

Multiple Choice

Which of the following statements concerning accrual accounting is correct?

• A) Expenses are recognised in the period in which the consumption of costs can be measured in a faithful, verifiable manner.
• B) Profit is the excess of cash inflows from income over cash outflows for expenses.
• C) Income from sales is recognised in the period when the cheque is cashed.
• D) For most businesses the cash approach gives a better measure of economic performance than does the accrual approach.

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