Which of the Following Is NOT a Formal Part of the Accounting

question 8

Multiple Choice

Which of the following is NOT a formal part of the accounting system?

• A) balance sheet
• B) income statement
• C) statement of owner's equity
• D) the work sheet

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Definitions:

Revenue Recognition

An accounting principle that outlines the specific conditions under which revenue is recognized and determines how to account for it.

Capital Leases

Long-term lease agreements that transfer substantially all rights and risks of ownership from the lessor to the lessee.

FASB

The Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.

IASB

The International Accounting Standards Board, responsible for the development and publication of International Financial Reporting Standards.