Which Statement Is Correct

question 55

Multiple Choice

Which statement is correct?

• A)Supplier discounts can only be accounted for by using the gross method.
• B)The amount owing for trade payables is generally not known with a high degree of certainty.
• C)An accrued liability is needed when a company has received goods,but not the invoice.
• D)Completeness means that obligations are reported in the proper accounting period.

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Definitions:

Wasted Time

Time that is not used effectively or productively.

Price Floor

A government-imposed minimum price for goods or services, aimed at preventing market prices from falling below a certain level to protect producers.

Market For Soda

The commercial space in which various types and brands of soda (sugary, carbonated beverages) are bought, sold, and competed over.

Surplus

The situation in which the quantity supplied of a product exceeds the quantity demanded at the existing price.