Which of the Following Concepts Is Important to Accrual Accounting

question 98

Multiple Choice

Which of the following concepts is important to accrual accounting?

• A)Time period, because accrual accounting divides earnings into time periods.
• B)Market basis, because inflation is a big factor in the environment.
• C)Cash basis, because if cash is not received, revenue is not accrued.
• D)Entity concept, because personal transactions must be separated from business transactions.

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Definitions:

Risk-Reducing Management

Management practices aimed at identifying, analyzing, and taking proactive steps to minimize or eliminate risks to an organization's capital and earnings.

Leadership Initiatives

Programs or actions taken by individuals or organizations aimed at developing or enhancing leadership skills and qualities among employees or team members.

Internalize Values

The process by which individuals adopt and integrate the values, beliefs, and norms of a group or society as their own.

Intrinsically Rewarding

An activity or task that is fulfilling and satisfying in itself, without the need for external rewards or recognition.