Which of the Following Concepts Is Important to Accrual Accounting

question 98

Multiple Choice

Which of the following concepts is important to accrual accounting?

• A)Time period, because accrual accounting divides earnings into time periods.
• B)Market basis, because inflation is a big factor in the environment.
• C)Cash basis, because if cash is not received, revenue is not accrued.
• D)Entity concept, because personal transactions must be separated from business transactions.

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Definitions:

Self-Affirmation

is the practice of reminding oneself of personal values and strengths in order to maintain a positive self-image and cope with threats to one's self-concept.

Achievement Motivation

The drive or desire for success and accomplishment, often pushing individuals to attain higher levels of performance.

Self-Verification

The theory suggesting individuals seek to confirm their self-concept by encouraging others to see them as they see themselves.

Self-Esteem

A person's personal assessment of their value, incorporating their feelings and convictions about their own identity.