Which statement is correct? As long as a company consistently uses the cash-basis of accounting, generally accepted accounting principles allow its use. The use of the cash-basis of accounting violates both the revenue recognition and expense recognition principles. The cash-basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received. As long as management is ethical, there are no problems with using the cash-basis of accounting.

Question

20-02-2020
Business

contestada

Which statement is correct? As long as a company consistently uses the cash-basis of accounting, generally accepted accounting principles allow its use. The use of the cash-basis of accounting violates both the revenue recognition and expense recognition principles. The cash-basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received. As long as management is ethical, there are no problems with using the cash-basis of accounting.

Respuesta :

ACCESS MORE ACCESS MORE ACCESS MORE ACCESS MORE

Otras preguntas

Patty took a cash advance of $1,500. her new credit card charges an annual percentage rate of 21%. the transaction fee for the cash advance is 3% of the amount

In which direction does the electric field point at a position directly south of a positive charge? A. East B. South C. West D. North

What number represents the same amount as 2+12 tens +6 ones?

Three times a quantity decreased by fourteen

How is a compound sentence formed? a. by joining two simple sentences with a comma and a coordinate conjunction b. by joining a simple sentence with a depende

What would occur if you were to replace the bulb in the circuit with a much brighter bulb? a Question 20 options: More energy would be transferred from electric

Which of the following words is an example of an absolute modifier. A.unique B.shocking C.distictive

How do I solve this question?

What is a controlled experiment? A.An experiment with only experimental variables B.An experiment with one dependent variable and one experimental variable C.An

Describe compact bone

agustinsr99 agustinsr99 · Answer 1 · 2020-02-21T02:07:54+01:00

Answer: The correct answer is "The use of the cash-basis of accounting violates both the revenue recognition and expense recognition principles.".

Explanation: The statement "The use of the cash-basis of accounting violates both the revenue recognition and expense recognition principles." is CORRECT because Cash-basis of accounting refers to an accounting base that recognizes transactions and other facts only when the cash is received or paid. Therefore the principle of recognition of income and expenses, which says that the recognition of losses and gains must be made according to time, regardless of having paid or collected, is violated.