Which one of the following bases of income and expense recognition is acceptable for Financial reporting under current GAAP?

A. Cash basis

B. Modified cash basis

C. Accrual basis

D. All of these

Under the cash basis, expenses are recognized when

A. They are paid by the entity

B. The costs expire or as assets are used

C. The revenue are recognized that the expenses helped to produce

D. Cash is received from revenues that the expenses helped to produce

Which of the following transactions will not be recognized in cash basis accounting?

A. Unsold inventory at the end of the period

B. Collection of account sales

C. Payment of utilities

D. Purchase of equity shares in Dogs Corporation