Accountants Prefer to Calculate Profitability Using The________ Basis Rather Than

question 39

Multiple Choice

Accountants prefer to calculate profitability using the________ basis rather than the____________ basis:

• A) adjusted; unadjusted.
• B) permanent ; temporary.
• C) accrual; cash.
• D) current; non-current.

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Definitions:

Agent

A person or entity authorized to act on behalf of another, known as the principal, in dealings with third parties.

Seasonal Goods

Seasonal goods are products that are in high demand during specific times of the year, such as holiday decorations, winter clothing, or summer fruits.

Retailer

A business entity that sells goods or services directly to consumers, usually in small quantities.

Wholesaler

An entity in the distribution channel that buys goods in large quantities from manufacturers or importers and sells them to retailers or other businesses.