The Approach to Preparing Financial Statements Based on Recognizing Revenues

question 159

Multiple Choice

The approach to 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) The operating cycle of a business
• C) Cash basis accounting
• D) The revenue recognition principle
• E) The matching principle

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Definitions:

Real Upper Limits

In statistics, the value that slightly exceeds the upper boundary of a class interval in a frequency distribution, taking into account the continuity of data.

Variable

An element, feature, or factor that is liable to vary or change, used in experimental and observational research studies.

Particular Interval

A specific range within a set of data or a mathematical function, generally defined by its upper and lower bounds.

Grouped Frequency Distribution

A grouped frequency distribution organizes data into intervals or groups, showing the number of occurrences for each interval.