Because cash-basis accounting violates both the revenue recognition principle and the matching principle,it is generally not accepted in preparing financial statements.

Question

Quizplus · Accepted Answer

Cash-basis accounting does not recognize revenue until it is received and does not match expenses with the revenue they generate, which violates both the revenue recognition principle and the matching principle. Therefore, it is generally not accepted in preparing financial statements.

Because Cash-Basis Accounting Violates Both the Revenue Recognition Principle and the Matching