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:

Core Characteristics

Essential attributes or features that define the identity or fundamental nature of something.

Job Demands

The various pressures, obligations or requirements that are inherent in a given job, including workload, complexity, and time pressures.

Job Resources

The tools, equipment, information, and support available to employees to perform their work effectively.

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity.