Which of the following does not correctly describe the cash basis of accounting?
A)It is not accepted for external reporting purposes.
B)Revenues are recognized when cash is collected from customers.
C)Expenses are recognized when they are paid for.
D)Cash payments for long-term assets are recognized as an expense at the time of payment.

Question

Quizplus · Accepted Answer

Cash payments for long-term assets are recognized as an investment at the time of payment, not as an expense.

Which of the Following Does Not Correctly Describe the Cash