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 on the income statement in the period in which they are earned
C) 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

Accrual basis of accounting does not report revenues and expenses based on when cash is received or paid. It reports them in the period in which they are earned or incurred, regardless of when the cash transaction occurs.

Which of the Following Is Not a Characteristic of Accrual