Accrual Accounting and the Adjusting Process Rely on Two Principles

question 13

Short Answer

Accrual accounting and the adjusting process rely on two principles: the ________ principle and the ________ principle.

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Definitions:

Time Pattern

The distribution or sequence of events, actions, or changes over time, often analyzed in various contexts such as financial planning or project scheduling.

Dividend Payout

The portion of earnings a company distributes to its shareholders in the form of dividends.

Large Dividends

Significant payments made by a corporation to its shareholders, usually derived from the company's profits.

Small Dividends

Refers to dividend payments that are relatively small in amount, typically paid by companies with modest profits or those adopting conservative dividend policies.