Major Assumptions Made in Measuring Business Income Include All of the Following

question 65

Multiple Choice

Major assumptions made in measuring business income include all of the following except

• A)continuity.
• B)periodicity.
• C)matching.
• D)accrual accounting.

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Definitions:

Journal Entry

Journal entry is the method by which financial transactions are recorded in an organization's accounting records, specifying the accounts affected and the direction (debit or credit) of the transaction.

Bank Statement

A monthly document provided by a bank detailing all transactions in an account, which can include deposits, withdrawals, service charges, and interest earned.

NSF Check

A check that a bank has declined to honor because the account on which it was drawn does not have sufficient funds.

EFT Deposit

Stands for Electronic Funds Transfer deposit, a method of transferring money directly from one bank account to another electronically.