Which of the following is not a characteristic of accrual basis of accounting?
A) Revenues and expenses are reported in the period in which cash is received or paid
B) Revenues are reported in the income statement in the period in which they are earned
C) Supports the matching concept
D) All are correct.

Question

Quizplus · Accepted Answer

The accrual basis of accounting does not report revenues and expenses in the period in which cash is received or paid. Instead, it reports them in the period in which they are earned or incurred, regardless of when cash is received or paid. The other options are correct characteristics of the accrual basis of accounting.

Which of the Following Is Not a Characteristic of Accrual