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For a Given Item, When the Performances of Those Whose

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For a given item, when the performances of those whose overall scores put them among the highest third of the group are compared with those who scored among the lowest third of the group, the resulting difference is called the


Definitions:

Cash Basis Accounting

A method of accounting where transactions are recorded when cash is actually received or paid, rather than when it is earned or incurred.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Revenue Recognition

Revenue recognition is the accounting principle governing when revenue is considered earned and can be recorded.

Expense Recognition Principle

An accounting principle that expenses should be recognized and recorded at the time they are incurred, not necessarily when cash is paid.

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