Which of the following is a CORRECT statement about the two bases of accounting?
A) Cash-basis accounting records revenues when they are earned.
B) Cash-basis accounting records expenses only at the end of the month.
C) GAAP requires accrual accounting.
D) Only the largest companies in the United States use accrual accounting.
C
Business
You might also like to view...
Assuming a discount rate of 10%, the present value of $1,000 received one year from now is
A) $1,100.00. B) $1,900.00. C) $909.09. D) $990.00.
Business
If an auditor were concerned with obtaining evidence about the appropriateness of the value of inventory, which of the following tests would be most appropriate?
A) compilation tests B) price tests C) confirmation of inventory held by outside parties D) physical examination of the inventory
Business