An Accountant Recognizes the Impact of a Business Event as It

question 29

Multiple Choice

An accountant recognizes the impact of a business event as it occurs and accounts for it appropriately in which basis of accounting?

• A) deferred
• B) accrual
• C) cash
• D) prepaid

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Definitions:

Annual Return

A yearly statement filed by businesses detailing important company information such as capital, membership, and accounts.

Pre-emptive Rights

Pre-emptive rights, in corporate law, are rights given to existing shareholders to purchase additional shares before they are offered to new potential shareholders, usually to maintain their proportional ownership in the company.

Proportionate Share

Refers to an individual's or entity's portion or share of a total amount, calculated based on specific criteria or ratios.

Allotment

The distribution or assignment of a portion of something, often referring to shares of stock, land, or time.