The Approach to Preparing Financial Statements Based on Recognizing Revenues

question 218

Multiple Choice

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:

• A)Cash basis accounting
• B)The matching principle
• C)The time period principle
• D)Accrual basis accounting
• E)Revenue basis accounting

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Definitions:

Literacy Rate

Literacy rate refers to the percentage of people within a population that can read and write at a specified age.

Agriculture

Agriculture is the practice of cultivating soil, producing crops, and raising livestock for food, fiber, and other products.

Developed Countries

Nations with advanced economic systems, high standards of living, robust infrastructures, and comprehensive social welfare systems.

Life Expectancy

The average number of years an individual is expected to live based on current mortality rates.