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What Accounting Concept Justifies the Usage of Accruals and Deferrals

question 53

Multiple Choice

What accounting concept justifies the usage of accruals and deferrals?


Definitions:

Business Value

Business value refers to the importance or worth that a company or project holds for its stakeholders, typically measured in terms of revenue, profitability, and market share.

Lottery Prize

A monetary or valuable award given to a winner in a lottery.

Equivalent Ratio

A ratio obtained from another ratio by multiplying each term by the same number, or by dividing each term by the same number.

Smallest Term

In mathematics, it refers to the term of minimal value in a sequence or among a set of terms.

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