Which One of the Following Is Not a Recognized Method

question 196

Multiple Choice

Which one of the following is not a recognized method of recognizing assets as expenses in a particular accounting period?

• A)Customers' account balances in accounts receivable are assigned to expense in the period in which each customer pays.
• B)Prepaid insurance is assigned to expense as the insurance expires.
• C)A building is depreciated and its cost is assigned to the current and future accounting periods in which the building is expected to be used.
• D)Merchandise inventory is assigned to cost of goods sold in the period the goods are sold.

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Definitions:

Timing

The selection of the precise or opportune moment to perform an action, which can greatly affect the outcome of an event.

Effortful Control

The ability to regulate one's responses, including emotional and attentional self-regulation, particularly through the exertion of willpower.

Exuberance

The quality of being full of energy, excitement, and cheerfulness; a joyful enthusiasm for life.

Temperament

The inherent part of an individual's personality that influences how they react to the world, including their emotional reactivity, intensity, and the speed of recovery from emotional events.