Which of the Following Statements Is TRUE of Accrual Basis

Multiple Choice

Which of the following statements is TRUE of accrual basis accounting?

A) Accrual basis accounting is required by Generally Accepted Accounting Principles (GAAP) .
B) Accrual basis accounting records expenses only when cash has been paid for them.
C) Accrual basis accounting records revenue only when cash is received.
D) Accrual basis accounting always results in greater net income than cash basis accounting.