Post Utme Joseph Ayo Babalola University 2022 Accounting Question 11

Practice objective / multiple choice question 11 from the 2022 Post Utme Joseph Ayo Babalola University Accounting examination.

Post Utme Joseph Ayo Babalola University 2022 Accounting Objective / Multiple Choice
Question 11 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2022 • ACCOUNTING • objective

A company's financial statements are prepared using the accrual basis of accounting. Which of the following statements is true?

Answer Options

Correct Answer A. The company's financial statements will show a higher net income than if it used the cash basis of accounting.
B. The company's financial statements will show a lower net income than if it used the cash basis of accounting.
C. The company's financial statements will show the same net income as if it used the cash basis of accounting.
D. The company's financial statements will not show any difference in net income compared to the cash basis of accounting.
Correct Answer
A
Correct Option:
The company's financial statements will show a higher net income than if it used the cash basis of accounting.

About This Question

This is Post Utme Joseph Ayo Babalola University 2022 Accounting Question 11. It is one of the objective questions from the 2022 Post Utme Joseph Ayo Babalola University Accounting examination.

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