The Gathering of Related Revenues and Expenses into the Same

question 70

Multiple Choice

The gathering of related revenues and expenses into the same period,regardless of when they were incurred,is:

• A) cash-basis accounting.
• B) market-value accounting.
• C) book-value accounting.
• D) accrual accounting.

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Definitions:

Interest Cost

The expense associated with borrowing funds, calculated as the rate of interest times the principal amount of the debt.