Which of the Following Concepts Is Important to Accrual Accounting

question 98

Multiple Choice

Which of the following concepts is important to accrual accounting?

• A)Time period, because accrual accounting divides earnings into time periods.
• B)Market basis, because inflation is a big factor in the environment.
• C)Cash basis, because if cash is not received, revenue is not accrued.
• D)Entity concept, because personal transactions must be separated from business transactions.

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Definitions:

Cognitive Behavior

The study of behavioral and mental processes that involves understanding problem solving, memory, and decision making.

Motor Behavior

The study of how motor skills are learned, controlled, and developed to facilitate physical movement.

Parietal Lobe

A region of the cerebral cortex that plays a key role in processing sensory information from various parts of the body, understanding spatial orientation and body awareness.

Frontal Lobe

is the area of the brain responsible for voluntary movement, expressive language, and for managing higher level executive functions.