All of the following are true regarding accrual accounting except:
A) Accrual basis measures operating success by the extent to which accomplishments exceed efforts.
B) Accrual basis measures operating success by the extent to which revenues exceed expenses.
C) Accrual basis reports operating activities in terms of their success in generating value.
D) Accrual basis for the recognition of expenses is not required under IFRS.

Question

Quizplus · Accepted Answer

The statement "Accrual basis for the recognition of expenses is not required under IFRS" is not true. Under IFRS, accrual accounting is required and expenses must be recognized when they are incurred, regardless of when they are paid. Therefore, option D is false. The other options are all true statements about accrual accounting.

All of the Following Are True Regarding Accrual Accounting Except