The accrual method of accounting:

A. States that revenue should be recognized in the period when cash is received

b. Requires that revenue be recognized in the accounting period when it is earned

C. Requires that events that make a difference to financial statement users be disclosed

D. States that revenue should be recorded using a permanent account

E. None of the above

The practice of recording revenue in the same period in which expenses were incurred to generate the revenue is referred to as the:

A.full disclosure principle

B. installment method

C. matching principle

D. revenue recognition principle

E. None of the above

The principle of conservatism states:

A. Do not overstate revenues and expenses, and do not understate assets

B. Do not understate revenue and expenses, and do not overstate assets

C. Do not overstate assets and revenue, and do not understate expenses

D. Do not understate assets and revenue, and do not overstate expenses

E. None of the above.

Answer rating: 100% (QA)

In the accounting approach known as accrual accounting revenue or expenses are recorded when a trans... View the full answer