Post Utme Ims U 2017 Accounting Question 24

Practice objective / multiple choice question 24 from the 2017 Post Utme Ims U Accounting examination.

Post Utme Ims U 2017 Accounting Objective / Multiple Choice
Question 24 POST_UTME_IMS_U • 2017 • ACCOUNTING • objective

A company's accounting system is based on the cash basis of accounting. The company's accountant wants to prepare a statement of financial position. What is the primary difference between the cash basis of accounting and the accrual basis of accounting?

Answer Options

A. The cash basis of accounting matches revenues and expenses with the period in which they are earned or incurred
Correct Answer B. The cash basis of accounting matches revenues and expenses with the period in which they are paid or received
C. The cash basis of accounting matches revenues and expenses with the period in which they are recorded
D. The cash basis of accounting matches revenues and expenses with the period in which they are budgeted
Correct Answer
B
Correct Option:
The cash basis of accounting matches revenues and expenses with the period in which they are paid or received

About This Question

This is Post Utme Ims U 2017 Accounting Question 24. It is one of the objective questions from the 2017 Post Utme Ims U Accounting examination.

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