The Approach to Preparing Financial Statements Based on Recognizing Revenues

question 142

Multiple Choice

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is

• A) Accrual basis accounting
• B) The operating cycle of a business
• C) Cash basis accounting
• D) The revenue recognition principle
• E) The matching principle

---

Definitions:

Sexual Pleasure

A state of physical and psychological enjoyment and satisfaction derived from sexual activity.

Road Rage

Aggressive or angry behavior exhibited by motorists, including speeding, yelling, or gestures, often triggered by traffic incidents.

Feeling Satiated

The sensation of fullness or satisfaction usually experienced after eating, which suppresses the drive to consume more food.

Diencephalon

The portion of the brain that contains structures such as the thalamus and hypothalamus, involved in sensory and autonomic functions.