GAAP does not allow cash basis accounting to be used in external financial reports.

Name: GAAP does not allow cash basis accounting to be used in external financial reports.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

According to GAAP,the accrual basis is the only acceptable method for external reporting of income.The cash basis can be used internally by some small companies,but GAAP does not allow it for external reporting.

GAAP Does Not Allow Cash Basis Accounting to Be Used