Which Statement Concerning Accrual Accounting Is True

Multiple Choice

Which statement concerning accrual accounting is true?

A) Profit is the excess of cash inflows from income over cash outflows for expenses.
B) Income from sales is recognised in the period when the cheque is cashed.
C) For most businesses the cash approach gives a better measure of economic performance than does the accrual approach.
D) Income is recognised in the period when the flow of economic benefits can be reliably measured.