________ Is an Accounting Method in Which Revenue Is Recorded

question 41

Multiple Choice

________ is an accounting method in which revenue is recorded when a sale is made,and expense is recorded when it is incurred.

• A) Accrual basis
• B) Cash basis
• C) Profit basis
• D) Depreciation
• E) Deferral basis

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Definitions:

Monetary Policy

Monetary policy involves the management of a nation's money supply and interest rates by its central bank to influence economic activity, inflation, and unemployment.

Effectiveness Lag

The delay between the time a policy or action is implemented and when its effects are observed and felt in the economy or targeted area.

Recognition Lag

The delay between the time when an economic problem or trend is identified and the time when it is officially recognized.

Discretionary Policy

Economic policies based on the judgment of policymakers rather than set by predefined rules.