In Uncertain Circumstances,the Conservatism Principle Guides Accountants to

question 90

Multiple Choice

In uncertain circumstances,the conservatism principle guides accountants to

• A)accelerate revenue recognition and delay expense recognition.
• B)accelerate expense recognition and delay revenue recognition.
• C)recognize expense of prepaid items when payment is made.
• D)delay both expense recognition and revenue recognition.

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Definitions:

Poisson Distribution

A distribution of probabilities indicating the likelihood of a certain number of occurrences within a specified time or space interval.

Exponential Distribution

A probability distribution used to model the time between events in a process where events occur continuously and independently at a constant average rate.

Probability

The likelihood or chance of an event occurring, often expressed as a number between 0 and 1.

Vehicles

Modes of transportation that are used to move people or goods from one location to another.