The Assumption Which Requires Transactions to Be Recognised in the Accounting

question 53

Multiple Choice

The assumption which requires transactions to be recognised in the accounting reports when they occur and not when the cash is received or paid is:

• A) accrual basis.
• B) accounting entity.
• C) faithful representation.
• D) accounting period.

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Definitions:

Decentralization

The dispersion of authority to make decisions throughout all organization levels.

Employment Security

The assurance an employee has about the continuity of their job within an organization.

Independent Contractors

Individuals who provide services to a company or another individual under terms specified in a contract, but who are not considered employees of the company.

Part-time Workers

Individuals employed in jobs that have fewer hours than a full-time position, typically offering lower pay and fewer benefits.