An Expense Occurred in 2016, and It Is Not Paid

question 166

Multiple Choice

An expense occurred in 2016, and it is not paid until 2017. Using cash-basis accounting, the expense should appear on:

• A)the 2016 income statement.
• B)the 2017 income statement.
• C)whichever income statement the business prefers.
• D)both the 2016 and 2017 income statements.

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Definitions:

Taste Buds

Sensory organs on the tongue that are responsible for detecting and interpreting flavors in food.

Primary Taste Sensations

The basic categories into which all our taste perceptions can be classified, typically sweet, sour, salty, bitter, and umami.

Light Adaptation

The process by which the eye adjusts its sensitivity to the brightness of the environment, enabling it to see in conditions ranging from bright sunlight to dim light.

Dark Adaptation

The process by which the eyes become more sensitive to low levels of light after being in a higher light level environment.