The primary difference between accrual-basis and cash-basis accounting is:

The primary difference between accrual-basis and cash-basis accounting is:


A) The timing of when revenues and expenses are recorded.

B) Cash-basis accounting is allowed for financial reporting purposes but not accrual-basis accounting.

C) Accrual-basis accounting violates both the concepts of revenue recognition and expense recognition.

D) Adjusting entries are only a necessary part of cash-basis accounting.



Answer: A


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