Which of the Following Is Not a Comprehensive Basis of Accounting

question 614

Multiple Choice

Which of the following is not a comprehensive basis of accounting other than generally accepted accounting principles?

• A) Cash receipts and disbursements basis of accounting.
• B) Basis of accounting used by an entity to file its income tax return.
• C) Basis of accounting used by an entity to comply with the financial reporting requirements of a government regulatory agency.
• D) Basis of accounting used by an entity to comply with the financial reporting requirements of a lending institution.

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Definitions:

Consumers

Individuals or groups who purchase goods and services for personal use and not for manufacturing or resale purposes.

Microeconomic Theory

The study of individual, household, and firm behaviors in decision making and allocation of resources.

Emphasis

A special importance, value, or prominence given to something.

Good

An item, material, or product that satisfies a want or need; can be tangible (physical) or intangible (like a service).