The Accrual Basis of Accounting

question 138

Multiple Choice

The accrual basis of accounting:

• A) Is generally accepted for external reporting because it is more useful than cash basis for most business decisions.
• B) Is flawed because it gives complete information about cash flows.
• C) Recognizes revenues when received in cash.
• D) Recognizes expenses when paid in cash.
• E) Eliminates the need for adjusting entries at the end of each period.

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Definitions:

Rape-Trauma Syndrome

A medical condition involving physical and psychological disturbances experienced by a rape victim, similar to posttraumatic stress disorder.

Flashbacks

Involuntary, vivid recollections of past experiences or traumas.

Discharge Preparation

The process of planning and organizing for a patient's release from a healthcare facility, ensuring they continue to receive proper care after leaving.

Violent Rape

A heinous act of sexual assault involving the use of force or intimidation.