Which Statement Concerning Accrual Accounting Is True

question 16

Multiple Choice

Which statement concerning accrual accounting is true?

• A) Profit is the excess of cash inflows from income over cash outflows for expenses.
• B) Income from sales is recognised in the period when the cheque is cashed.
• C) For most businesses the cash approach gives a better measure of economic performance than does the accrual approach.
• D) Income is recognised in the period when the flow of economic benefits can be reliably measured.