Which of the Following Is Not an Application of Accrual

question 122

Multiple Choice

Which of the following is not an application of accrual accounting?

• A)Recognizing revenues when earned and expenses when incurred.
• B)Applying the matching rule.
• C)Adjusting the accounts.
• D)Recording on the basis of actual receipt and payment of cash.

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Definitions:

Nonpreferences

The absence of a preference or inclination towards any particular option or choice.

Emotion in Decision Making

The influence that feelings and emotional responses have on the process of making choices or judgments.

Escalation of Commitment

A pattern of behavior in which individuals continue to follow a failing course of action or invest more resources in a losing proposition, based on their hope or belief that the situation will improve.

Price War

A competitive strategy where companies continuously lower prices to outdo each other, often at the expense of profit margins, to capture a larger market share.