If Revenues Are Recognized and Recorded When Earned, the Company

question 78

Multiple Choice

If revenues are recognized and recorded when earned, the company is using the:

• A)cash basis of accounting.
• B)accrual basis of accounting.
• C)adjustment basis of accounting.
• D)the expense basis of accounting.

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Definitions:

Avoid the Risk

A risk management strategy involving actions to prevent exposure to a risk, often by choosing not to engage in an activity.