Which of the Following Approaches to Income Measurement Underlies Financial

question 60

Multiple Choice

Which of the following approaches to income measurement underlies financial accounting and reporting?

• A) Transaction approach
• B) Economic approach
• C) Valuation approach
• D) Physical capital maintenance approach

---

Definitions:

Repression

A defense mechanism in psychoanalytic theory in which unpleasant thoughts, memories, or feelings are pushed out of the conscious mind.

Repression

A defense mechanism in which unpleasant thoughts, feelings, or desires are excluded from conscious awareness.

Proactive Interference

The phenomenon where older memories hinder the recall of newly acquired information.

Automatic Processing

The unconscious encoding of incidental information and well-learned tasks, requiring little to no cognitive effort.