Which of the Following Statements Relating to the Cash Basis

Which of the following statements relating to the cash basis of accounting is incorrect?

A) Income is recorded in the period in which the cash is received.
B) It is used by small business entities and professionals who conduct most of their business activities in cash.
C) It is considered to be a suitable method of accounting for governments.
D) The cost of goods and services consumed in the current period, but not paid for, are recognised as expenses in a later period when cash is paid.