In the Context of Proper Accounting Systems, Which of the Following

question 28

Multiple Choice

In the context of proper accounting systems, which of the following best describes accrual-based accounting?

• A)It categorizes material assets that can quickly be converted to cash as a source of revenue.
• B)It recognizes expenses as they are paid and recognizes revenue as it is generated.
• C)It treats accounts payable, fixed assets, and current assets as expenses until they are fully paid out.
• D)It records expenses and revenues when they actually occur, regardless of when the cash is received.

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience.

Minimum Wage

An hourly wage floor set by government that firms must pay their workers.

Poor Children

Refers to children living below the poverty line, lacking access to essential resources such as food, shelter, and education.

Single Mother

A woman raising her child or children without the support of a partner within the household.