Which of the Following Is Not True

question 241

Multiple Choice

Which of the following is not true?

• A)Accrual accounting measures the effects of transactions and events in the periods when they occur.
• B)Cash-basis accounting recognizes only cash receipts and disbursements.
• C)Under accrual accounting, firms recognize revenues when an arrangement satisfies the revenue recognition criteria, increasing net assets but not necessarily cash at the time of revenue recognition.
• D)Under accrual accounting, firms recognize expenses when an arrangement satisfies the expense recognition criteria, decreasing net assets but not necessarily cash at the time of expense recognition.
• E)Accrual accounting often uses the amount of cash received or paid in some period to measure the amount of revenues and expenses recognized during the current period, and the timing of revenue and expense recognition coincides with the timing of cash receipts and disbursements.

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Definitions:

Ethical Climate

The shared perception of what is ethically correct behavior and how ethical issues should be handled in an organization.

Ethics

The branch of knowledge that deals with moral principles, dictating what is good for individuals and society and establishing the nature of duties that people owe to themselves and each other.

Toxic Triangle

A concept in leadership studies that outlines a combination of destructive leaders, susceptible followers, and conducive environments that lead to harmful outcomes.

Elements

Fundamental components or basic building blocks applicable to various contexts, including scientific elements, organizational dynamics, or design principles.