As long as a company consistently uses the cash basis of accounting, generally accepted accounting principles allow its use.

Which statement is correct?

As long as a company consistently uses the cash basis of accounting, generally accepted accounting principles allow its use.

 

The cash basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received.

 

The use of the cash basis of accounting violates both the revenue recognition and expense recognition principles.

 

As long as management is ethical, there are no problems with using the cash basis of accounting.

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