The System of Preparing Financial Statements Based on Recognizing Revenues

question 161

Multiple Choice

The system of preparing financial statements based on recognizing revenues when the cash is received and reporting expenses when the cash is paid is called:

• A) Accrual basis accounting.
• B) Operating cycle accounting.
• C) Cash basis accounting.
• D) Revenue recognition accounting.
• E) Current basis accounting.

---

Definitions:

Keratin

A type of protein found in the hair, nails, and outer layer of the skin, which provides protection and strength.

Accessory Structures

Structures that are not vital for the body to function but support or assist the role of major organs or systems.

Dense Irregular Connective

A type of connective tissue with collagen fibers arranged in a disorganized pattern, providing strength and resistance in various directions.

Areolar Connective

A type of loose connective tissue that is widely distributed throughout the body, providing elasticity and support, and serving as a binding layer.