Which of the Following Statements Is Correct

question 47

Multiple Choice

Which of the following statements is correct?

• A) Income that has been earned but not yet received is called accrued income.
• B) Unearned Subscription Income is a liability account.
• C) Under the accrual basis of accounting,revenue is recognized and recorded in the period when it is earned regardless of when cash related to the transaction is received.
• D) All of these statements are correct.

Identify and understand the phenomenon of "creative destruction" and its role in market innovation and progress.

Recognize the mechanisms through which market economies resolve basic economic questions regarding production, distribution, and consumption.

Understand the basic components and functions of the circular flow model in a market economy.

Identify the roles of households and businesses within the market system.

---

Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net profit or loss.

Ending Inventory

The value of goods that a company has in stock at the end of its fiscal year, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Accounts Payable

A liability to a creditor, carried on an open account, usually for purchases of goods and services.

LIFO Retail Inventory Method

An accounting technique that values inventory on the assumption that the last items placed in inventory are sold first, specifically applied to retail settings.