The Approach to Preparing Financial Statements Based on Recognizing Revenues

question 105

Multiple Choice

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

• A)Cash basis accounting.
• B)The expense recognition (matching)principle.
• C)The time period assumption.
• D)Accrual basis accounting.
• E)Revenue basis accounting.

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Definitions:

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