Which of the following is not true about accrual basis accounting?
A) The revenue principle is applied.
B) The matching principle is applied.
C) Required for external accounting reports.
D) Requires the timing of cash receipts be in the same period as revenues recognized.

Question

Quizplus · Accepted Answer

Accrual basis accounting recognizes revenues and expenses when they are incurred, regardless of when cash is received or paid. Therefore, the timing of cash receipts does not necessarily have to be in the same period as revenues recognized.

Which of the Following Is Not True About Accrual Basis