Can You Help Rosa Chaput Determine Why There Is Some

question 23

Multiple Choice

Can you help Rosa Chaput determine why there is some effort put into testing cash when the cash account is not material?

• A) because cash can be stolen easily
• B) because cash has to be valued properly at year-end
• C) because so many transactions flow through cash
• D) none of the above

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Definitions:

Revenue Recognition

An accounting principle that outlines the specific conditions under which revenue is recognized and recorded.

Adjusting Entry

An adjusting entry is a journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Services Performed

The provision of work or assistance by a business or individual to another party, often measured in terms of time or deliverables completed.

Revenue Recognition Principle

An accounting principle that dictates the specific conditions under which revenue is recognized or accounted for.