What is the basis of accounting used in reporting the Statement of Activities?
A) Cash basis.
B) Modified accrual basis.
C) Accrual basis.
D) Either cash basis or accrual basis, depending on the type of revenue.
E) Either modified accrual basis or accrual basis, depending on the type of revenue.

Question

Quizplus · Accepted Answer

The Statement of Activities is typically reported using the accrual basis of accounting, which recognizes revenues when they are earned and expenses when they are incurred, regardless of when cash transactions occur.

What Is the Basis of Accounting Used in Reporting the Statement