Performance measured using the cash basis is not sensitive to the timing of cash expenditures.

Name: Performance measured using the cash basis is not sensitive to the timing of cash expenditures.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Performance measured using the cash basis is sensitive to the timing of cash expenditures because it recognizes revenue and expenses only when cash is actually received or paid, making the timing of cash flows crucial to reported financial performance.

Performance Measured Using the Cash Basis Is Not Sensitive to the Timing