Accrual-basis accounting is allowed under
A)GAAP but not IFRS.
B)IFRS but not GAAP.
C)both IFRS and GAAP.
D)neither IFRS nor GAAP.

Question

Quizplus · Accepted Answer

Accrual-basis accounting is allowed under both IFRS and GAAP. Both accounting frameworks use accrual accounting as the basis for recognizing revenues and expenses in financial statements. This method recognizes economic events, such as the sale of goods or the provision of services, as they occur, regardless of when cash is received or paid out. This provides a more accurate picture of a company's financial performance and is necessary for preparing reliable financial statements.

Accrual-Basis Accounting Is Allowed Under