Question 3 Which of the following statements concerning accrual-basis accounting is incorrect? O Accrual-basis accounting is the method required by generally accepted accounting principles. O Accrual-basis accounting recognizes expenses when they are paid. O Accrual-basis accounting follows the revenue recognition principle. O Accrual-basis accounting follows the expense recognition principle.
Question 3 Which of the following statements concerning accrual-basis accounting is incorrect? O Accrual-basis accounting is the method required by generally accepted accounting principles. O Accrual-basis accounting recognizes expenses when they are paid. O Accrual-basis accounting follows the revenue recognition principle. O Accrual-basis accounting follows the expense recognition principle.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:a liability account.
O a contra asset account.
O an expense account.
O a stockholders' equity account.
Question 3
Which of the following statements concerning accrual-basis accounting is incorrect?
Accrual-basis accounting is the method required by generally accepted accounting principles.
Accrual-basis accounting recognizes expenses when they are paid.
O Accrual-basis accounting follows the revenue recognition principle.
O Accrual-basis accounting follows the expense recognition principle.
Question 4
Closing entries
O summarize the activity in every account.
O are prepared before the financial statements.
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