The cash basis of accounting is not in accordance with generally accepted accounting principles.

Name: The cash basis of accounting is not in accordance with generally accepted accounting principles.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cash basis of accounting does not adhere to the basic principles of GAAP (Generally Accepted Accounting Principles). It only considers the cash inflows and outflows during a particular period. Hence, it is not considered a reliable method of accounting.

The Cash Basis of Accounting Is Not in Accordance with Generally