Which of the following is in accordance with generally accepted accounting princ

Question

Which of the following is in accordance with generally accepted accounting principles?

a. Accrual-basis accounting

b.   Cash-basis accounting

c. Both accrual-basis and cash-basis accounting

d.   Neither accrual-basis nor cash-basis accounting

2) An accounting time period that is one year in length, but does not begin on January 1, is referred to as

a. a fiscal year.

b.   an interim period.

c. the time period assumption.

d.   a reporting period.

3) The revenue recognition principle dictates that revenue should be recognized in the accounting records

a. when cash is received.

b.   when the performance obligation is satisfied.

c. at the end of the month.

d.   in the period that income taxes are paid.

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

As per revenue recognition principle of generally accepted accepted accounting principles, revenue should be recognised when it is earned. Receiving cash should not be a basis for recognizing revenue or expense. So, accrual accounting should be followed as per principles of gaap. So, as per above discussion, option a is the correct option

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.