The Accrual Basis of Accounting

question 208

Multiple Choice

The accrual basis of accounting:

• A)Is generally accepted for external reporting since it is more useful for most business decisions.
• B)Is flawed because it gives complete information about cash flows.
• C)Recognizes revenues when received in cash.
• D)Recognizes expenses when paid in cash.
• E)Eliminates the need for adjusting entries at the end of each period.

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Definitions:

Dissociative Fugue

A rare psychiatric disorder characterized by amnesia and sudden unexpected travel away from one's home or workplace.

Dissociative Amnesia

is a psychological condition where an individual experiences memory loss that cannot be attributed to normal forgetfulness, often related to traumatic or stressful events.

Depersonalization

An abnormality in self-awareness where individuals feel detached from their thoughts, feelings, or physical body.

Body Dysmorphic Disorder

A disorder in which individuals become preoccupied with the belief that they have certain defects or flaws in their physical appearance. The perceived defects or flaws are imagined or greatly exaggerated.