TB MC Qu$.3-64($Static$)$ Which of the following statements does not...

Which of the following statements does not properly describe the accrual basis of accounting?

Multiple Choice

Generally accepted accounting principles require use of the accrual basis.

Accrual accounting should not be used when providing financial statements to external decision makers.

Expenses are recognized when incurred in generating revenues regardless of the timing of cash flows.

Revenues are recognized when the company transfers promised goods or services to customers regardless of the timing of cash flows.