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Generally accepted accounting principles require accrual- basis accounting.?
Generally accepted accounting principles require accrual- basis accounting.
True/False
2 Answers
- SandyLv 71 decade agoFavorite Answer
True. The Framework for the Preparation and Presentation of Financial Statements (the Framework) adopted by the IASB sets out the underlying assumptions of financial statements:
Accrual Basis. The effects of transactions and other events are recognised when they occur, rather than when cash or its equivalent is received or paid, and they are reported in the financial statements of the periods to which they relate. [F.22]
Going Concern. The financial statements presume that an enterprise will continue in operation indefinitely or, if that presumption is not valid, disclosure and a different basis of reporting are required. [F.23]
Source(s): http://www.iasplus.com/standard/framewk.htm - Anonymous1 decade ago
False. "Cash Basis" is also an accepted accounting principal
Many small business are using "cash basis" accounting..
Source(s): 25 years with CPA firm
