The Primary Difference Between Accrual-Basis and Cash-Basis Accounting Is

Multiple Choice

The primary difference between accrual-basis and cash-basis accounting is:

A) The timing of when revenues and expenses are recorded.
B) Cash-basis accounting is allowed for financial reporting purposes but not accrual-basis accounting.
C) Accrual-basis accounting violates both the revenue recognition and matching principles.
D) Adjusting entries are only a necessary part of cash-basis accounting.