Which of the Following Must Use the Accrual Method of Accounting

question 50

Multiple Choice

Which of the following must use the accrual method of accounting?

• A) All of the above must use the accrual method.
• B) None of the above must use the accrual method.
• C) Only I and II must use the accrual method.
• D) Only I and III must use the accrual method.
• E) Only III must use the accrual method.

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Definitions:

Business

An enterprise or corporation participating in business, industry, or professional pursuits.

Cash Balance

The amount of cash that a company or individual has available at any given time.

Advertising Expense

Advertising expense is the cost associated with promoting an organization’s products or services through various media channels.

Shareholder Dividends

A distribution of earnings to shareholders by a corporation, usually in the form of profit sharing.