The strict cash basis of accounting
A) records revenue when earned.
B) does not conform with GAAP.
C) records expenses when incurred.
D) none of the above

Question

Quizplus · Accepted Answer

The strict cash basis of accounting does not conform with Generally Accepted Accounting Principles (GAAP) because it recognizes revenues and expenses only when cash is received or paid, not when they are earned or incurred.

The Strict Cash Basis of Accounting