Which of the following are in accordance with generally accepted accounting principles?
A) Accrual basis accounting
B) Cash basis accounting
C) Both accrual basis and cash basis accounting
D) Neither accrual basis nor cash basis accounting

Question

Quizplus · Accepted Answer

Accrual basis accounting is in accordance with generally accepted accounting principles, while cash basis accounting is not. Accrual basis accounting recognizes revenues and expenses when they are earned or incurred, regardless of when the cash is received or paid. This provides a more accurate picture of a company's financial health. Cash basis accounting, on the other hand, only recognizes transactions when cash is exchanged, which can distort the financial statements.

Which of the Following Are in Accordance with Generally Accepted