The Classification Approach That Is Based on the Assumption That

question 54

Multiple Choice

The classification approach that is based on the assumption that objects differ in the extent to which they possess certain characteristics or properties is known as the

• A) diagnostic approach.
• B) categorical approach.
• C) qualitative approach.
• D) dimensional approach.

Identify the principles of accrual accounting, including the recognition of revenues and expenses.

Recognize the definitions and treatment of prepaid expenses, accrued expenses, and deferred revenues.

Relate the effect of proper and improper adjustments on financial statements’ accuracy and completeness.

Understand the concepts of book value, depreciation, and the adjustment for depreciation.