The Concept That Assists Accountants in Determining When to Recognize

question 30

Multiple Choice

The concept that assists accountants in determining when to recognize revenue in the accounts is the:

• A)Cost principle.
• B)Time-period assumption.
• C)Recognition criteria for revenue.
• D)Matching objective.

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Definitions:

Present Values

The worth of a future amount of money today, calculated by discounting future cash flows at a specific interest rate.

Annuities

Savings vehicles that deliver scheduled payouts, commonly utilized for building retirement reserves.

Compute

To calculate or determine by mathematical methods.

Compounded Semiannually

Interest calculated and added to the principal amount twice a year, leading to interest on interest.