Which one of these statements about the accrual-basis of accounting is false? This basis is in accord with generally accepted accounting principles. Companies record events that change a company's financial statements in the periods in which the events occur. Companies record revenue only when they receive cash, and record expense only when they pay out cash. Companies recognize revenue in the period in which the performance obligation is satisfied.

Which one of these statements about the accrual-basis of accounting is false? This basis is in accord with generally accepted accounting principles. Companies record events that change a company's financial statements in the periods in which the events occur. Companies record revenue only when they receive cash, and record expense only when they pay out cash. Companies recognize revenue in the period in which the performance obligation is satisfied.

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter2: Audits Of High-risk Accounts

Section2.2: Golden Bear Golf, Inc.

Problem 5Q

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