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The Idea That a Behavior Will Increase or Decrease Based

question 27

Multiple Choice

The idea that a behavior will increase or decrease based on the consequences that follow that behavior is crucial to ________.


Definitions:

Cash Receipt

The collection of money (paper money, coins, checks) received by a business for the sale of goods or services or any other financial transaction.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Recorded When Earned

A principle indicating that revenue should be recognized in the accounting period in which it is earned, regardless of when the cash is received.

Accrued Revenues

Revenues that have been earned by providing goods or services but have not yet been received or recorded.

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