Which of the following statements is NOT true?
A) Judgements made by accountants affect profit.
B) Attempts are made to measure incomplete transactions.
C) The impact of transactions is recognised only when cash is received or paid.
D) Estimates are made of certain balance sheet items.

Question

Quizplus · Accepted Answer

The statement "The impact of transactions is recognised only when cash is received or paid" is not true. Accrual accounting recognizes the impact of transactions when they occur, regardless of when cash is received or paid. Therefore, option C is the answer.

Which of the Following Statements Is NOT True