The Method of Accounting in Which Income Is Recorded When

question 35

Short Answer

The method of accounting in which income is recorded when earned and expenses are recorded when incurred is called the __________ basis of accounting.

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Definitions:

Classical School

A school of economic thought that emphasizes the importance of free markets, competition, and the self-regulating nature of economies.

Monetarists

Economists convinced that fluctuations in the money supply play a crucial role in influencing short-term national output and affect price levels over the long term.

Balancing the Budget

The process of adjusting income and expenditure so that they equal each other, resulting in no deficit or surplus.

Classical Economists

Economists from the 18th and 19th centuries who advocated for free markets, minimal government intervention, and believed in the theory of self-regulating economies.