The Accrual Basis of Accounting

Multiple Choice

The accrual basis of accounting:

A) Is generally accepted for external reporting since it is more useful for most business decisions.
B) Is flawed because it gives complete information about cash flows.
C) Recognizes revenues when received in cash.
D) Recognizes expenses when paid in cash.
E) Eliminates the need for adjusting entries at the end of each period.