

MCQOPTIONS
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1. |
Accrual accounting is used because |
A. | it provides a better indication of ability to generate cash flows than the cash basis. |
B. | it recognizes revenues when cash is received and expenses when cash is paid. |
C. | cash flows are considered less important. |
D. | All of the above |
Answer» B. it recognizes revenues when cash is received and expenses when cash is paid. | |