Which of the following is not true about accrual basis accounting?
A)The revenue principle is applied.
B)The Expense Recognition (Matching)principle is applied.
C)It is required for external accounting reports.
D)It requires the timing of cash receipts be in the same period as revenues are recognized.

Question

Quizplus · Accepted Answer

Accrual basis accounting does not require the timing of cash receipts to be in the same period as revenues are recognized. In fact, under accrual basis accounting, revenues and expenses are recognized when they are earned or incurred, regardless of when cash is received or paid.

Which of the Following Is Not True About Accrual Basis