What Accounting Concept Justifies the Use of Accruals and Deferrals

question 79

Multiple Choice

What accounting concept justifies the use of accruals and deferrals?

• A) Going-concern assumption
• B) Corporate form of organization
• C) Consistency characteristic
• D) Arm's-length transactions

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Definitions:

Atlantic Region

A geographical area adjacent to the Atlantic Ocean, often referring to the eastern parts of countries or specific areas within continents that are near the Atlantic.

Unrelated Living Kidney Donation

The process where a living individual donates one of their kidneys to someone they do not have a pre-existing personal or familial relationship with.

Chi-square Statistic

A number that tells us how much the observed counts in a statistical test differ from the counts we would expect if there were no relationship in the population.

P-value

The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.