Asked by
Roxie Martinez
on Dec 16, 2024Verified
Cash-basis accounting is allowed under
A) GAAP but not IFRS.
B) IFRS but not GAAP.
C) both IFRS and GAAP.
D) neither IFRS nor GAAP.
GAAP
Generally Accepted Accounting Principles (GAAP) are a set of rules and standards for financial reporting that companies in the U.S. are required to follow to ensure consistency and comparability among financial statements.
IFRS
A collection of accounting standards established by the International Accounting Standards Board, intended for worldwide application, known as International Financial Reporting Standards.
Cash-Basis Accounting
An accounting method where revenues and expenses are recorded when cash is received or paid, as opposed to when they are incurred.
- Comprehend the principles of cash-basis and accrual-basis accounting methods.
Verified Answer
JD
Learning Objectives
- Comprehend the principles of cash-basis and accrual-basis accounting methods.