The Approach to Preparing Financial Statements Based on Recognizing Revenues

question 36

Multiple Choice

The approach to preparing financial statements based on recognizing revenues when the cash is received and reporting expenses when the cash is paid is called:

• A)Cash basis accounting.
• B)The matching principle.
• C)The operating cycle of a business.
• D)The revenue recognition principle.
• E)Accrual basis accounting.

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Definitions:

Collectivistic Cultural

A societal perspective that emphasizes the needs, goals, and views of the group over those of the individual, often found in Asian, African, and Latin American cultures.

Cultural Outlook

The perspective or viewpoint that is shaped by the beliefs, values, and practices of a culture, influencing how individuals interpret the world around them.

Cultural System

The collection of shared beliefs, values, norms, and practices that dictates the way of life for a group of people or society.

Individualism

A cultural system that values the needs of the individual self more than those of the group.