Which of the following statements is false?
A) GAAP uses the cash basis of accounting.
B) GAAP requires that revenue and costs must be capable of being measured reliably.
C) GAAP employs accrual accounting.
D) GAAP employs the time period assumption.

Question

Which of the following statements is false? 
A) GAAP uses the cash basis of accounting.
B) GAAP requires that revenue and costs must be capable of being measured reliably.
C) GAAP employs accrual accounting.
D) GAAP employs the time period assumption.

Quizplus · Accepted Answer

GAAP does not use the cash basis of accounting, it employs accrual accounting.

Which of the Following Statements Is False