Rather Than Using the Cash Method Accountants Prefer to Calculate

question 15

Multiple Choice

Rather than using the cash method accountants prefer to calculate profitability using the:

• A) adjusted approach.
• B) accrual approach.
• C) permanent approach.
• D) non-current approach.

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Definitions:

Fixture

A thing that was originally personal property and that has been actually or constructively affixed to the soil itself or to some structure legally a part of the land.

Abandoned Property

Property that is left by its owner who has no intention of returning or claiming ownership.

Producing

The act of creating, manufacturing, or otherwise bringing into existence a product or service.

Inheriting

The process by which assets, traditions, or genetic traits are received from predecessors or relatives after their death.