The Measurement Conventions of Accounting Include All of the Following

question 38

Multiple Choice

The measurement conventions of accounting include all of the following except:

• A) continuity.
• B) full-disclosure.
• C) historical cost.
• D) matching.
• E) revenue recognition.

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Definitions:

Statement of Income

A financial document that shows a company's revenues, expenses, and profits or losses over a specific period of time.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Reconciliation

The process of ensuring two sets of records, such as bank statements and company ledgers, are in agreement, identifying discrepancies, and making adjustments if necessary.