A Classification System Based on Evolutionary Relationships Is Called a __________

question 40

Multiple Choice

A classification system based on evolutionary relationships is called a __________ system.

• A)phylogenetic
• B)phenetic
• C)systematic
• D)determinative

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Definitions:

Expense Recognition Principle

An accounting principle that states expenses should be recognized and recorded when they contribute to generating revenue, regardless of when cash is paid.

Allowance for Doubtful Accounts

An accounting entry known as a contra-asset account that predicts the amount of accounts receivable that might be uncollectible.

Realizable Value

The estimated amount for which an asset can be sold, minus any selling costs, at a given point in time.

Materiality Constraint

An accounting principle that allows for the ignoring of accounting information that would not impact users’ decision-making due to its insignificance.