A Broad Principle That Requires Identifying the Activities of a Business

question 11

Multiple Choice

A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the

• A) Operating cycle of a business
• B) Timeliness principle
• C) Going-concern principle
• D) Matching principle
• E) Accrual basis of accounting

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Definitions:

Debit And Credit Side

Terms used to describe the two sides of an accounting ledger; the debit side records increases in assets and expenses and decreases in liabilities and equity, while the credit side records increases in liabilities, equity, and revenues and decreases in assets and expenses.

Source Document

A primary document that holds the necessary information to verify a transaction recorded in a financial system.

Manual

A handbook or guide that provides instructions or guidelines on how to perform tasks or operate machinery or equipment.

Computerized Accounting System

A software system that is used for processing accounting transactions and managing accounts with minimal manual input.