The Statement Concerning Accrual Accounting That Is True Is

question 36

Multiple Choice

The statement concerning accrual accounting that is true is:

• A)Profit is the excess of cash inflows from income over cash outflows for expenses
• B)Income is recognised in the period when the flow of economic benefits can be reliably measured
• C)For most businesses the cash approach gives a better measure of economic performance than does the accrual approach
• D)Income from sales is recognised in the period when the cheque is cashed

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Definitions:

Majority Influence

The impact that the larger portion of a group can have on individual behavior or beliefs, often leading to conformity.

Minority Influence

The process by which a smaller group or individual can change the beliefs or behaviors of the majority through consistent, committed actions.

Permanent Change

An alteration or modification in processes, behavior, or systems that is intended to last indefinitely, without reversal to original state.

Conversion Theory

A theory suggesting that minority views can influence and ultimately change the majority opinion under certain conditions.