The Gathering of Related Revenues and Expenses into the Same

question 5

Multiple Choice

The gathering of related revenues and expenses into the same period,regardless of when cash is actually received or paid,is:

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

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Definitions:

Contingent Liability

A possible financial duty that could emerge in the future, contingent on the result of a certain event.

Probable

A term used in accounting and finance to describe events or outcomes that are likely to happen or transactions that are likely to occur.

Estimable

Capable of being estimated or approximated in quantity or value.

Interest Calculations

The process of determining the amount of interest due or earned over a specified period of time, often based on principal amount, rate, and time.