Which one of these statements about the accrual basis of accounting is false? (a) Companies record events
Question:
Which one of these statements about the accrual basis of accounting is false?
(a) Companies record events that change their financial statements in the period in which events occur, even if cash was not exchanged.
(b) Companies recognize revenue in the period in which the performance obligation is satisfied.
(c) This basis is in accordance with generally accepted accounting principles.
(d) Companies record revenue only when they receive cash and record expense only when they pay out cash.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119316022
8th Edition
Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt
Question Posted: