Which of the following statements does not properly describe the accrual basis of accounting?
A)Expenses are recognized when incurred in generating revenues regardless of the timing of cash flows.
B)Revenues are recognized when the company transfers promised goods or services to customers regardless of the timing of cash flows.
C)Generally accepted accounting principles require use of the accrual basis.
D)Accrual accounting should not be used when providing financial statements to external decision makers.

Question

Quizplus · Accepted Answer

Accrual accounting is the preferred method for financial reporting to external decision makers as it provides a more accurate representation of a company's financial position and performance.

Which of the Following Statements Does Not Properly Describe the Accrual