Which of the following statements concerning accrual-basis accounting is incorrect?
A) Accrual-basis accounting follows the revenue recognition principle.
B) Accrual-basis accounting is the method required by IFRS.
C) Accrual-basis accounting recognizes expenses when they are paid.
D) Accrual-basis accounting follows the expense recognition principle.

Question

Quizplus · Accepted Answer

Accrual-basis accounting recognizes expenses when they are incurred, not necessarily when they are paid.

Which of the Following Statements Concerning Accrual-Basis Accounting Is Incorrect