What Accounting Concept Justifies the Usage of Accruals and Deferrals

question 53

Multiple Choice

What accounting concept justifies the usage of accruals and deferrals?

• A)Going concern assumption
• B)Materiality constraint
• C)Consistency characteristic
• D)Monetary unit assumption

Understand the legal framework and requirements affecting employee benefits and independent contractor classifications.

Recognize strategies for effectively communicating the value of employee benefits to enhance organizational competitiveness.

Identify common misunderstandings employees have about their benefits and strategies to address these issues.

Understand the implications of the Americans with Disabilities Act on employer benefit policies.

---

Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life evenly.

Useful Life

The estimated period a fixed asset is expected to be useful to the purchasing company, affecting its depreciation calculations.

Total Income

The sum of all revenues and gains earned by a company during a specific period, including sales, interest, dividends, and other sources of income.

Average Rate of Return

Calculates the average annual return on an investment over its lifetime, taking into account both the capital gains and any income received from the investment.