Carlos Company's accountant makes the assumptions or performs the activities listed below.
Tell which of the following concepts of accrual accounting, most directly relates to each assumption or action:
(a) periodicity,
(b) continuity,
(c) accrual accounting,
(d) revenue recognition,
(e) deferral, and (f) accrual.
1. Recognizes the usefulness of financial statements prepared on a monthly basis even though they are based on estimates.
2. Prepares an income statement that shows the revenues