Which of the Following Is True About Accrual Basis Accounting

Multiple Choice

Which of the following is true about accrual basis accounting and cash basis accounting?

A) Net Income is generally larger under accrual basis accounting than cash basis accounting.
B) GAAP does not require accrual basis accounting be used for external reports.
C) Accrual basis accounting and cash basis accounting will always produce the same amount of net income.
D) Accrual basis accounting provides a better measure of operating performance than does cash basis accounting