A Business Document That Contains Some Predefined Data and May

question 113

Multiple Choice

A business document that contains some predefined data and may include some areas where additional data are to be filled in best describes a:

• A)report
• B)diagram
• C)memo
• D)form

---

Definitions:

Revenue Recognition Principle

An accounting principle that dictates the conditions under which revenue is recognized and recorded, usually when it is earned and realizable.

Cash

Liquid currency and assets readily convertible to cash that are used by businesses to conduct transactions, pay expenses, and provide financial buffers.

Deferrals

Transactions where the recognition of revenue or expenses is postponed to future accounting periods.

Recognition

The process of formally recording or incorporating an item into the financial statements of an entity.