Post Utme Covenant University 2017 Accounting Question 32

Practice objective / multiple choice question 32 from the 2017 Post Utme Covenant University Accounting examination.

Post Utme Covenant University 2017 Accounting Objective / Multiple Choice
Question 32 POST_UTME_COVENANT_UNIVERSITY • 2017 • ACCOUNTING • objective

A government agency is responsible for collecting taxes on behalf of the government. The agency's accounting system uses a cash basis of accounting. Which of the following is a characteristic of a cash basis of accounting?

Answer Options

A. Revenue is recognized when it is earned, regardless of when it is received.
B. Expenses are matched with revenues when they are incurred.
Correct Answer C. Cash inflows and outflows are recorded when they occur.
D. Assets are valued at their historical cost.
Correct Answer
C
Correct Option:
Cash inflows and outflows are recorded when they occur.

About This Question

This is Post Utme Covenant University 2017 Accounting Question 32. It is one of the objective questions from the 2017 Post Utme Covenant University Accounting examination.

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