One of the Bases Other Than GAAP or IFRS Is

question 41

Multiple Choice

One of the bases other than GAAP or IFRS is the Financial reporting framework for small- and medium-sized businesses. This basis

• A) has not yet been approved by the AICPA.
• B) is the same as the income tax basis.
• C) draws upon a blend of traditional accounting principles and accrual income tax methods of accounting.
• D) must be used by a business with sales under $1 million.

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Definitions:

Perpetual

A system of inventory management where records are updated immediately following a sale or purchase of goods.

Merchandise Inventory

The total value of a business's commodities or goods available for sale to customers at any given time.

Accounts Payable

The amount owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Cash

A current asset account that represents currency or currency equivalents that can be accessed immediately or near-immediately.