Which statement is correct? The use of the cash-basis of
accounting violates both the revenue recognition and expense
recognition principles. The cash-basis of accounting is objective
because no one can be certain of the amount of revenue until the
cash is received. As long as management is ethical, there are no
problems with using the cash-basis of accounting. As long as a
company consistently uses the cash-basis of accounting, generally
accepted accounting principles allow its use.

Which statement is correct? The use of the cash-basis of
accounting violates both the revenue recognition and expense
recognition principles. The cash-basis of accounting is objective
because no one can be certain of the amount of revenue until the
cash is received. As long as management is ethical, there are no
problems with using the cash-basis of accounting. As long as a
company consistently uses the cash-basis of accounting, generally
accepted accounting principles allow its use.