A Person Chooses to Follow the Accrual Accounting Approach in Their

question 45

Multiple Choice

A person chooses to follow the accrual accounting approach in their personal finances. Which of the following transactions best demonstrates this process?

• A) buying some clothing on credit - making and recording the monthly payments on the credit card until the full amount is paid off
• B) ordering a new magazine subscription and choosing the option for them to bill you later - making and recording the payment when the bill is received in the mail
• C) Both of the scenarios demonstrate an accrual accounting approach.
• D) Neither of the scenarios demonstrate an accrual accounting approach.

---

Definitions:

Virtual Reality

An immersive digital environment that users can interact with in a seemingly real or physical way through special electronic equipment.

Embedded Sensors

Devices integrated into physical environments to collect data and interact with their surroundings.

Sensors

Devices or modules that detect changes in the environment or within a system and send information to other electronics, typically a computer processor.

Smart Refrigerator

An advanced fridge equipped with internet connectivity and features such as inventory monitoring, streaming media, and integration with other smart home devices.