If a Business Records Revenues When Earned,regardless of Whether Cash

question 25

Multiple Choice

If a business records revenues when earned,regardless of whether cash has been received,and records expenses when they are incurred,the accounting system is a(n)

• A) accrual basis of accounting.
• B) cash basis of accounting.
• C) modified cash basis of accounting.
• D) revenue basis of accounting.

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Definitions:

Governor Adjusting Screw

A component in machinery that allows for the adjustment of the governor, which regulates the engine speed by controlling fuel intake.

Cutout Pressure

The pressure level at which a pressure switch deactivates, or a safety valve opens to prevent excessive pressure build-up in a system.

PMI

Project Management Institute, a global organization that offers certifications and promotes standards for project management.

Relay Valve

In air brake systems, a valve that receives a control signal and then uses a local supply of air to send out to actuator devices. Most relay valves replicate the signal pressure valve to the out circuit, but some are designed to amplify or modulate the signal.