If a Business Records Revenue When It Is Received and Records

question 33

Multiple Choice

If a business records revenue when it is received and records the purchase of a building as an asset and makes adjustments to allocate the cost of the building over many accounting periods,the business accounting system is a(n)

• A) accrual basis of accounting.
• B) adjustment basis of accounting.
• C) cash basis of accounting.
• D) modified cash basis of accounting.

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Definitions:

Balancing

The process of ensuring that different elements are in the correct proportion or position to create harmony, stability, or equality.

Demands

The requirements or needs that stakeholders expect to be fulfilled by an organization or individual.

Competitive Challenges

The difficulties or obstacles faced by organizations in maintaining or improving their position in the market.

Privacy Issues

Concerns related to the protection of sensitive personal information from unauthorized access or misuse.