The System of Preparing Financial Statements Based on Recognizing Revenues

question 161

Multiple Choice

The system of preparing financial statements based on recognizing revenues when the cash is received and reporting expenses when the cash is paid is called:

• A) Accrual basis accounting.
• B) Operating cycle accounting.
• C) Cash basis accounting.
• D) Revenue recognition accounting.
• E) Current basis accounting.

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Definitions:

Largest Fontanel

The anterior fontanel, which is the biggest soft spot on a baby's head where skull bones haven't yet fused.

Fontanels Close

The process by which the soft, membranous gaps (fontanels) between the skull bones of an infant gradually harden and close.

Occipital Bone

A bone that forms the back and base of the skull, and contains the foramen magnum through which the spinal cord passes.

Cranial

Pertaining to the skull or cranium, often used to describe the direction towards the head.