Which of the following statements is true of accrual basis accounting?
a. Accrual basis accounting records revenue only when cash is received.
b. Accrual basis accounting is required by GAAP.
c. Accrual basis accounting always results in greater net income than cash basis accounting.
d. Accrual basis accounting records expenses only when cash has been paid to them.

Question

Which of the following statements is true of accrual basis​ accounting?
a. Accrual basis accounting records revenue only when cash is received.
b. Accrual basis accounting is required by GAAP.
c. Accrual basis accounting always results in greater net income than cash basis accounting.
d. Accrual basis accounting records expenses only when cash has been paid to them.

Unlock all answers

Weekly leaderboard