Which of the following is not a characteristic of the accrual basis of accounting?

Updated on August 6, 2022

“Which of the following is not a characteristic of accrual basis of
accounting?”
Question 8 options:

1. Revenues and expenses are reported in the period in which cash
is received or paid
2. Revenues are reported in the income statement in the period in
which they are earned
3. Supports the matching concept
4. All are correct.

Answer

Under accrual basis of accounting, revenues are recognized in the books of accounts as and when they are eamed and expenses a

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