Which of the Following Is a Benefit of Using an Accrual

question 49

Multiple Choice

Which of the following is a benefit of using an accrual accounting system?

• A) It accurately specifies a company's current cash position.
• B) It is only appropriate for cash-based businesses.
• C) It greatly reduces the demand on bookkeeping.
• D) It can be used to affect tax bills.
• E) It provides a more accurate indication of the profitability of a business.

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Definitions:

Supply Chain

The entire system of production, handling, and distribution of goods from raw materials to final products to the consumer.

Production Time

The period required to manufacture or produce goods, from the start of the process to its completion.

Differentiation

The process of distinguishing a product or service from others to make it more attractive to a particular target market.

Self-Driving Car

An autonomous vehicle capable of sensing its environment and operating without human involvement through a combination of sensors, algorithms, and machine learning.