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:

Incremental Value

The additional or extra value generated by undertaking a new project or action, calculated as the difference in total value with and without the project.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment, calculated by discounting future cash flows to the present value.

Company Stock

Shares of ownership in a corporation, representing a claim on the company's assets and earnings.

True Cost

The complete expense of a product or service, accounting for all financial, economic, and environmental factors.