Accounts often need to be adjusted because:
a there are never enough accounts to record all the transactions.
b Accounts needs to be updated due to usage or passage of time.
c there are always errors made in recording transactions.
d management can't decide what they want to report.
Which statement is correct?
a As long as a company consistently uses the cash basis of accounting,
generally accepted accounting principles allow its use.
b The use of the cash basis of accounting violates both the revenue
recognition and matching principles.
c The cash basis of accounting is objective because no one can be certain of
the amount of revenue until the cash is received.
d As long as management is ethical, there are no problems with using the
cash basis of accounting.
