The Disbursement Basis for Recognizing Resource Outflows Uses Which of the Following

question 22

Multiple Choice

The disbursement basis for recognizing resource outflows uses which of the following bases?

• A)The full accrual basis
• B)The accrual basis only as applied to liabilities
• C)The accrual basis only as applied to expenses
• D)The cash basis

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Definitions:

New Capital

Funds obtained by a company to finance its operations, expansion, or other projects, which can come from debt or equity sources.

Historical Cost

The original monetary value of an asset or transaction, based on the amount paid or the value at the time it was acquired.

Financial Capital Maintenance

A concept in accounting where profit is measured as the increase in financial or monetary capital, ignoring changes in the purchasing power of money.

Net Assets

The total assets of a company minus its total liabilities.