The _____ Basis of Accounting Typically Recognizes Revenue When a Firm

question 38

Multiple Choice

The _____ basis of accounting typically recognizes revenue when a firm sells goods (manufacturing and retailing firms) or renders services (service firms) , and recognizes expenses in the period when the firm recognizes the revenues that the costs helped produce.

• A)cash
• B)accrual
• C)funds flow
• D)tax
• E)none of the above

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period.

Substitute Choices

Options available that can replace or serve as alternatives to others, usually in the context of consumer goods or services.

Small Business Owner

An individual who owns and operates a business that is smaller in scale in terms of revenues, employees, and operations.

Economy Of Scale

The cost advantage achieved by companies when production becomes efficient, as fixed costs are spread out over more units of output.