Which of the following statements describes why accrual accounting better reflects a business's performance as compared to the cash basis?
a. Revenues are always recorded in the period in which they are earned when services and products are delivered.
b. Comparability of financial statements is improved.
c. Expenses are always recognized in the period in which they are incurred.
Answer:
a. Revenues are always recorded in the period in which they are earned when services and products are delivered.
b. Comparability of financial statements is improved.
c. Expenses are always recognized in the period in which they are incurred.
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A mechanistic organization is characterized by high levels of ________
A) informality B) nonroutine job functions C) specialization D) flexibility
The master budget is called a static budget because the budget for the period is developed around a single, or static, planned output level
Indicate whether the statement is true or false