Which of the following is in accordance with generally accepted accounting principles? Select one: a. Both accrual-basis and cash-basis accounting b. Neither accrual-basis nor cash-basis accounting C. Accrual-basis accounting d. Cash-basis accounting
Which of the following is in accordance with generally accepted accounting principles? Select one: a. Both accrual-basis and cash-basis accounting b. Neither accrual-basis nor cash-basis accounting c. Accrual-basis accounting d. Cash-basis accounting
Answer
Answer: here option C is the correct answer
There are two accounting methods practiced by companies the
accrual accounting method and cash accounting method
Accrual accounting recognizes costs and expenses when they occur
rather than actual cash is exchanged.
The matching principle of accrual accounting requires that
company match expenses with revenue recognition recording both at
same time
Only the accrual accounting method is allowed by generally
accepted accounting principles.
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