Which of the following is not a characteristic of the accrual basis of accounting?
A) Revenues and expenses are reported in the period in which cash is received or paid.
B) Revenues are reported on the income statement in the period in which they are earned.
C) The accrual basis of accounting supports the matching concept.
D) Expenses are reported in the same period as the revenues to which they relate.

Question

Quizplus · Accepted Answer

The accrual basis of accounting reports revenues and expenses in the periods in which they are earned or incurred, regardless of when cash is received or paid. Therefore, option A is not a characteristic of the accrual basis of accounting.

Which of the Following Is Not a Characteristic of the Accrual