contestada

Which of the following statements is true of accrual basis​ accounting?A.Accrual basis accounting always results in greater net income than cash basis accounting.B.Accrual basis accounting records revenue only when cash is received.C.Accrual basis accounting records expenses only when cash has been paid for them.D.Accrual basis accounting is required by Generally Accepted Accounting Principles​ (GAAP).

Respuesta :

kaympoey08

Answer:

The answer is

.D.Accrual basis accounting is required by Generally Accepted Accounting Principles​ (GAAP).

Explanation:

GAAP, require accrual accounting because it presents a more accurate picture of a company's financial condition.

Tundexi

Accrual basis is as accounting method where accounting transactions are recorded for revenue when earned and expenses when incurred.

  • Accrual basis accounting does not records revenue only when cash is received, rather, its record revenue when they are earned.

  • Accrual basis accounting does not records expenses only when cash has been paid for them but when they are incurred.

  • Example of an accrual basis account is when a company record revenue when a project is complete, not when the company get paid.

In conclusion, Generally Accepted Accounting Principles (GAAP) allows only accrual accounting method because of its accuracy in providing information about an organization financial position.

Therefore, Option D is correct.

Learn more about Accrual basis accounting here

brainly.com/question/7538806

Otras preguntas