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:

Ethnic Label

A term or descriptor applied to individuals or groups based on their ethnicity, often used to emphasize differences rather than similarities.

Social Necessity

The concept that certain conditions, goods, or services are essential for the functioning and well-being of a society.

Hispanic American

An individual of Latin American descent living in the United States, contributing to the cultural and demographic diversity of the country.

Ethnic Group

A community or population made up of people who share a common cultural background, heritage, language, or lineage.