What Accounting Concept Justifies the Use of Accruals and Deferrals

question 79

Multiple Choice

What accounting concept justifies the use of accruals and deferrals?

• A) Going-concern assumption
• B) Corporate form of organization
• C) Consistency characteristic
• D) Arm's-length transactions

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Definitions:

Circuit Switching

A method of communication where a dedicated channel or circuit is established for the duration of a transmission between two endpoints.

PGP

Pretty Good Privacy, an encryption program that provides cryptographic privacy and authentication for data communication.

Handshaking

In a connection-oriented protocol, the process of exchanging control packets before exchanging data packets.

Packet Switching

A method of grouping data into packets that are transmitted over a network and can travel independently to their destination.