A Method of Accounting in Which Income or Expenses Are

question 52

Multiple Choice

A method of accounting in which income or expenses are recorded at the time they are incurred,rather than when they are paid,is called

• A) Accrual basis
• B) Cash basis
• C) Time basis
• D) Expense basis

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Definitions:

Tort Committed

An act or omission that gives rise to injury or harm to another, resulting in legal liability.

Debts or Claims

Obligations owed by one party to another, which may be subject to repayment or compensation.

Admission of a New Partner

A business procedure that involves integrating a new partner into an existing partnership, often requiring adjustments in capital and profit-sharing ratios.

Capital Contributions

Financial or property assets contributed by owners or partners to a company or partnership to maintain or increase its capital.