The Accounting Convention That Requires the Continuous Life of the Business

question 34

Multiple Choice

The accounting convention that requires the continuous life of the business to be divided into time periods of the same length for the purpose of measuring profit, is the:

• A) accounting period convention.
• B) matching convention.
• C) going concern convention.
• D) business entity convention.

Recognize the contributions of Walter Cannon and Hans Selye to stress physiology.

Explain the effects of stress on health, both direct and indirect.

Understand the role of catecholamines and corticosteroids in stress response.

Understand how stress affects immune function and the potential impact on health.

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Definitions:

Prepaid Insurance

An asset account that represents the amount of insurance premium payments made in advance for coverage extending beyond the current accounting period.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Insurance Expense

The cost incurred by a company to insure its assets, operations, or liabilities over a certain period.

Accounts Payable

Liabilities or amounts owed by a business to its suppliers or vendors for goods and services received.