Generally accepted accounting principles require the accrual basis of accounting.

Name: Generally accepted accounting principles require the accrual basis of accounting.
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This statement is true. Generally accepted accounting principles (GAAP) require the accrual basis of accounting, which means that revenues are recognized when earned, regardless of when payment is received, and expenses are recognized when incurred, regardless of when payment is made.

Generally Accepted Accounting Principles Require the Accrual Basis of Accounting