Which of the Following Concepts Is Important to Accrual Accounting

question 98

Multiple Choice

Which of the following concepts is important to accrual accounting?

• A)Time period, because accrual accounting divides earnings into time periods.
• B)Market basis, because inflation is a big factor in the environment.
• C)Cash basis, because if cash is not received, revenue is not accrued.
• D)Entity concept, because personal transactions must be separated from business transactions.

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Definitions:

Implantation

The process by which a fertilized egg attaches to the lining of the uterus where it can then grow and develop into a fetus.

IUD

An intrauterine device, which is a small, often T-shaped birth control device inserted into a woman's uterus to prevent pregnancy.

Foramen Ovale

An opening in the septum between the two upper chambers of the heart (atria) that is present in the fetus but normally closes shortly after birth.

Fetal Development

The process of growth and maturation of a fetus inside a woman's uterus from conception to birth.