What Three Rules Do We Rely on to Evaluate Whether

question 79

Short Answer

What three rules do we rely on to evaluate whether to assign an internal or an external attribution to someone's behavior or outcome?

---

Definitions:

Accrue

The process of recognizing revenue or expenses that have been earned or incurred but not yet officially recorded or received in cash.

Total Liabilities

The sum of all financial obligations or debts a company owes, including both short-term and long-term liabilities.

Incurred Expense

Expenses that have been recognized in the accounting period in which they are incurred, regardless of when the payment is made.

Adjusting Process

An analysis and updating of the accounts when financial statements are prepared.