Generally accepted accounting principles require that companies use the ____ of accounting.
A) cash basis
B) deferral basis
C) accrual basis
D) account basis

Question

Quizplus · Accepted Answer

Generally accepted accounting principles require that companies use the accrual basis of accounting, which recognizes transactions when they occur, regardless of when cash is received or paid. This provides a more accurate picture of a company's financial performance and position. The cash basis (A) only recognizes transactions when cash is received or paid, while the deferral basis (B) and account basis (D) are not recognized accounting methods.

Generally Accepted Accounting Principles Require That Companies Use the ____