Examlex
Field observation suggests that populations of a particular species of herbivorous mammal undergo cyclic fluctuations in density at three- to five-year intervals. Which of the following represent (a) plausible explanation(s) of these cycles?
Accrual
The accounting principle of recording revenues and expenses when they are incurred, regardless of when cash transactions occur.
Contra Asset
A balance sheet account used to reduce the value of related asset accounts to report their net value; examples include accumulated depreciation or allowance for doubtful accounts.
Prepayment
Payments made in advance for goods or services, recorded as an asset on the balance sheet until the corresponding goods or services are received.
Adjusting Entries
At the end of a financial period, entries are made in the books to correctly allocate profits and outlays to the period they belong to.
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