Accrual-Basis Accounting

question 161

Multiple Choice

Accrual-basis accounting:

• A) is not consistent with the GAAP conceptual frame work.
• B) has been eliminated as a result of the IASB/FASB joint project on revenue recognition.
• C) results in companies recording transactions that change a company's financial statements.
• D) is optional under GAAP.

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Definitions:

Surrogation

The substitution of a performance measure (or target) for the strategy or objective it was intended to assess, potentially misaligning organizational goals.

Performance Metrics

Quantitative measures used to assess, compare, and track performance or production over time.

Strategic Objectives

Targets or goals that an organization aims to achieve, which are designed to further its long-term interests.

CSR Efforts

Corporate social responsibility efforts entail voluntary activities undertaken by a company to operate in an economic, social, and environmentally sustainable manner.