Which of the Following Refer to the Basis for Measuring

question 75

Multiple Choice

Which of the following refer to the basis for measuring profitability,sales,and various budget items in the easiest way and also provide data for the analysis of the geographic distribution of sales and customer accounts by type and size?

• A)In house researches
• B)Newsletters
• C)Invoices
• D)Debit memos

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Definitions:

Matching Principle

An accounting principle that requires expenses to be matched with the revenues they help to generate in the same accounting period.

Expenses

Costs incurred during the operation of a business, such as rent, salaries, and utilities, required for generating revenue.

Revenue

The overall earnings accrued from transactions involving goods or services at the heart of a business's primary operations.

Retrospective Approach

The retrospective approach involves revising previously issued financial statements to reflect changes in accounting policy as if the new policy had always been in effect.