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

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Definitions:

Focusing

The mental process of directing one's attention or concentration to a specific object, task, or activity.

Core Feelings

Refers to the fundamental emotions or sensations that form the basis of one's experiences and reactions.

Depression

A common and serious medical illness that negatively affects how you feel, the way you think, and how you act, characterized by feelings of sadness, loss, or anger that interfere with a person’s everyday activities.

Anger

A strong feeling of displeasure or hostility, often a natural, though potentially destructive, response to perceived wrongs or frustrations.