Generally Accepted Accounting Principles Requires That Companies Use the ____

question 24

Multiple Choice

Generally accepted accounting principles requires that companies use the ____ of accounting.

• A) cash basis
• B) deferral basis
• C) accrual basis
• D) account basis

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Definitions:

504 Loan Program

A Small Business Administration program that provides long-term, fixed-rate financing to small businesses for major fixed assets, such as land and buildings.

Certified Development Company

A nonprofit organization sponsored either by private interests or by state or local governments.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and vehicles.

Equity Funds

Investment funds that primarily invest in stocks, aiming to provide returns through capital gains or dividends.