The System of Preparing Financial Statements Based on Recognizing Revenues

question 161

Multiple Choice

The system of 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) Operating cycle accounting.
• C) Cash basis accounting.
• D) Revenue recognition accounting.
• E) Current basis accounting.

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Definitions:

Tort

A civil wrong or injury, other than breach of contract, for which the law provides a remedy.

Public Prosecutor

A legal officer appointed or elected to represent the government in criminal proceedings against individuals or entities.

Prosecuting Attorney

A lawyer who represents the government in bringing charges against individuals or entities accused of criminal activity.

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