Accounting Principles Include

question 36

Multiple Choice

Accounting principles include:

• A) cost, revenue recognition, and going concern.
• B) cost, revenue recognition, and timeliness.
• C) cost, revenue recognition, and full disclosure.
• D) cost, economic entity, and full disclosure.
• E) cost, economic entity, and revenue recognition.

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Definitions:

Amortized

Refers to the process of gradually reducing debt through regular payments that cover both interest and principal over a set period.

Compounded Monthly

This process involves the reinvestment of interest, so each month's interest earning is based on the principal plus the previously earned interest.

Amortized

The gradual reduction of a loan or debt by regular payments of both interest and principal.

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, so that each subsequent interest calculation is made on a slightly higher amount.