A Broad Principle That Requires Identifying the Activities of a Business

question 154

Multiple Choice

A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the:

• A) Operating cycle of a business.
• B) Time period assumption.
• C) Going-concern assumption.
• D) Matching principle.
• E) Accrual basis of accounting.

Utilize the complement method for determining net prices.

Understand and apply rounding rules in financial calculations.

Compute discount dates and due dates in cash discount scenarios.

Calculate the amount of discount and remittance for early payments.

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Definitions:

Administrative

Relating to the organization, management, and execution of office tasks or duties within a company, institution, or organization.

Clinical

Relating to the observation and treatment of actual patients rather than theoretical or laboratory studies.

General Supplies

Basic, essential items required for the operation of a business, office, or for the execution of a task or project.

Unanticipated Shortage

An unexpected deficiency or lack of supply, often referring to situations where resources or items are not available in the needed amount.