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:

Chesapeake Colonies

Refers to the English colonies in North America that were located around the Chesapeake Bay, notably Virginia and Maryland, in the 17th century.

New England

A region in the northeastern United States comprising six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, historically significant for its early settlement by Pilgrims.

Federal Liberty

A concept related to the freedoms and rights guaranteed to individuals by a federal government, often found in the context of constitutional discussions.

Civil Liberty

The freedom of citizens to exercise traditional rights such as freedom of speech, assembly, and religion without governmental interference or repression.