Which Fundamental Accounting Concept Stipulates That Revenues and Profits Are

question 22

Multiple Choice

Which fundamental accounting concept stipulates that revenues and profits are not anticipated,but recognized only when realized as cash?

• A) Consistency
• B) Prudence
• C) Comparability
• D) Accruals

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Definitions:

Capital Account Balances

The net result of public and private international investments flowing in and out of a country, including financial and capital assets.

Partnership Liquidation

The process of winding up a partnership's operations, distributing its assets to creditors and shareholders, and terminating its existence.

Legal Action

A formal proceeding in a court of law where a party seeks a legal remedy, such as the enforcement of rights, redress of grievances, or settlement of disputes.

Unpaid Debts

Liabilities or amounts owed that have not yet been paid or settled.