Which of the following is in accordance with generally accepted accounting principles?
A) Accrual-basis accounting
B) Cash-basis accounting
C) Both accrual-basis and cash-basis accounting
D) Neither accrual-basis nor cash-basis accounting

Question

Quizplus · Accepted Answer

Accrual-basis accounting is in accordance with generally accepted accounting principles, as it recognizes revenue and expenses when they are earned/incurred, regardless of when cash is received/paid. This provides a more accurate picture of a company's financial position and performance. Cash-basis accounting, on the other hand, only recognizes revenue and expenses when cash is received/paid, which can result in distorted financial statements.

Which of the Following Is in Accordance with Generally Accepted