Which one of these statements about the accrual-basis of accounting is false? This basis is in accord with generally accepted accounting principles. Companies record events that change a company's financial statements in the periods in which the events occur. Companies record revenue only when they receive cash, and record expense only when they pay out cash. Companies recognize revenue in the period in which the performance obligation is satisfied.

Which one of these statements about the accrual-basis of accounting is false? This basis is in accord with generally accepted accounting principles. Companies record events that change a company's financial statements in the periods in which the events occur. Companies record revenue only when they receive cash, and record expense only when they pay out cash. Companies recognize revenue in the period in which the performance obligation is satisfied.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter6: Accounting Quality

Section: Chapter Questions

Problem 14QE

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