Which of the Following Is Not a Characteristic of the Accrual

question 32

Multiple Choice

Which of the following is not a characteristic of the accrual basis of accounting?

• A) revenues and expenses are reported in the period in which cash is received or paid
• B) revenues are reported on the income statement in the period in which they are earned
• C) accrual basis of accounting supports the matching concept
• D) expenses are reported in the same period as the revenues to which they relate

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Definitions:

Gestalt Principle

A theory which proposes that humans tend to organize visual elements into groups or unified wholes when certain principles are applied, such as similarity or proximity.

Template Matching

A theory of pattern recognition that suggests objects are identified by comparing them to mental templates or prototypes.

Featural Analysis

A process in cognitive psychology where visual stimuli are broken down into their basic elements or features for recognition and processing.

Prototype Matching

A theory in cognitive psychology that proposes the process of object recognition involves comparing stimulus with an internally stored prototype or the most typical example of a category.