To what does basis of accounting refer?
A)whether an entity is trying to measure the excess of inflows over outflows
B)how much cash an entity received in a particular reporting period
C)the timing of recognition of assets,liabilities,revenues,and expenditures/expenses in financial statements
D)the ownership of the assets,liabilities,and equities reported in a balance sheet

Question

Quizplus · Accepted Answer

Basis of accounting refers to the timing of recognition of assets, liabilities, revenues, and expenditures/expenses in financial statements. It includes whether the accounting is accrual-based or cash-based. Options A, B, and D do not accurately describe the basis of accounting.

To What Does Basis of Accounting Refer