Which of the Following Is in Accordance with Generally Accepted

question 215

Multiple Choice

Which of the following is in accordance with generally accepted accounting principles?

• A) Accrual-basis accounting
• B) Cash-basis accounting
• C) Both accrual-basis and cash-basis accounting
• D) Neither accrual-basis nor cash-basis accounting

---

Definitions:

Wage Bill

the total amount of money paid by employers to their employees for work performed, typically within a specific period.

Wage Rate

The standard amount of compensation individuals receive in exchange for performing work or services, typically expressed per hour or year.

Profit-Maximizing Number

The output level at which a business achieves the highest possible profit, determined by analyzing costs and revenue functions.

Profit-Maximizing Firm

A business entity that seeks to achieve the highest possible profits through its operations and strategies.