tion 10 Which statement is correct? signment: Week 2 Practice Quiz false a. Th e

Question

tion 10 Which statement is correct? signment: Week 2 Practice Quiz false a. Th e cash-basis of accounting is objecti of revenue until the cash is received. ive because no one can be certain of the amount b. As l ong as management is ethical, there are no problems with us accounting. using the cash-basis of The use of the cash-bas e use of the cash-basis of accounting violates both the revenue recogniton expense recognition principles epte d. company consistently uses the cash-basis of accounting, generally acc accounting principles allow its use. Answer:

Explanation / Answer

The use of the cash basis of accounting violates both the revenue recognition and expense recognition principles

This is because the income should be recognized when earned irrrespective of the fact when received in cash,similarlily the expense should be recognized when expense irrespective of the fact when paid , thus the cash basis violates both

the correct statement is :

The use of the cash basis of accounting violates both the revenue recognition and expense recognition principles

This is because the income should be recognized when earned irrrespective of the fact when received in cash,similarlily the expense should be recognized when expense irrespective of the fact when paid , thus the cash basis violates both

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