Firms That Provide Clients with Accounting and Tax Services Are

question 119

Multiple Choice

Firms that provide clients with accounting and tax services are called _____ accounting firms.

• A)certified private
• B)certified public
• C)registered private
• D)accredited public

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Definitions:

Balance Sheet Accounts

Accounts that are reported on the balance sheet and reflect the company's assets, liabilities, and equity at a point in time.

Cash Basis Accounting

A method of accounting where transactions are recorded when cash is actually received or paid, rather than when it is earned or incurred.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Revenue Recognition

Revenue recognition is the accounting principle governing when revenue is considered earned and can be recorded.