The Approach to Preparing Financial Statements Based on Recognizing Revenues

question 218

Multiple Choice

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:

• A)Cash basis accounting
• B)The matching principle
• C)The time period principle
• D)Accrual basis accounting
• E)Revenue basis accounting

---

Definitions:

Concise Message

Communication that is clear and brief, delivering the intended message in as few words as necessary.

"It Is" Starters

A writing technique often used to introduce or emphasize a statement or concept.

Digital Media

Digital media refers to content that is created, distributed, and accessed on digital devices, including text, audio, video, and graphics.

Sentence Structure

The arrangement of words, phrases, and clauses in a sentence, determining its complexity and clarity.