Accrual Accounting: 5 True or False Questions

Can you answer these 5 True or False Questions on the Accrual Method of Accounting?

1. In Accrual Accounting, Expenses are only recorded when Cash is paid out. True or False?
2. In the Accrual Method, Revenue is recognized when it's earned, not when it's received. True or False?
3. The Accrual Method of Accounting is a requirement for publicly traded companies. True or False?
4. The Accrual Method applies the Revenue Recognition Principle, but not the Matching Principle. True or False?
5. The Accrual Method aligns Revenue with related Expenses, which allows you to accurately measure Profit. True or False?

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[AccountingStuff]

How did you score?

ANSWERS ⬇️

1. FALSE - In Accrual Accounting, Expenses are recorded when they are incurred, not when Cash is paid out.
2. TRUE - In the Accrual Method, Revenue is recognized when it's earned and Expenses are recorded as they are incurred.
3. TRUE - The Accrual Method of Accounting is a requirement for publicly traded companies. Both under GAAP & IFRS.
4. FALSE - The Accrual Method applies both the Revenue Recognition Principle and the Matching Principle.
5. TRUE - The Accrual Method aligns Revenue with related Expenses, which allows you to accurately measure Profit.

Head to accountingstuff.com for more practice questions like this.

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[jessicaargallon]

I got all, sana sa quiz din namin perfect ako 😂

[frankiesantiago]

Didnt know the public company one. Cool stuff

[Adrian-cnrk]

Do you branch out into Intermediate/Advanced accounting or is it just the basics?

[BryanMuzumi]

❤This dude is a blessing guys, like, subscribe and comment for the algo🎉