Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) GAAP-based financial statements are prepared according to the "cash" rather than the "accrual" basis of accounting.
B) Accounting choices and estimates can have a significant impact on the outcome of financial statement numbers.
C) The accrual method means that the expense is recognized after the cash is paid out.
D) The purpose of the accrual method is to attempt to "match" assets with liabilities in appropriate accounting periods.