1. Question In general, accountants measure income using an approach based on:transactions economics Correct 2. Question
Which concept holds that an organization’s life can be divided into discrete accounting periods (months, quarters, years)?
The periodicity assumption seems practical and logical; however, it introduces allocation problems when dividing the life of a company into specific units of time.
Under the accrual basis of accounting, revenue should be recognized at the time services are rendered or when goods are sold and delivered to a customer.
Business expenses should be recognized in the same period as the revenues they helped to produce. This concept is known as the:matching principle cash basis of accounting Correct 6. Question