An Expense Occurred in 2016, but It Is Not Paid

question 206

Multiple Choice

An expense occurred in 2016, but it is not paid until 2017. Using accrual 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.

Understand the concepts of independence and dependent events in probability.

Apply combinatorial methods to solve probability problems.

Develop critical thinking through the application of probability to decision-making.

Understand the differences between direct quotations, paraphrasing, and summarizing.

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Definitions:

Part-Time Job

Employment with fewer hours per week than a full-time job, often offering less benefits and lower wage compared to full-time positions.

Married Filing Jointly

A filing status for married couples that have chosen to combine their income and deductions on a single tax return.

Divorced

A marital status indicating that a person has legally ended their marriage.

Income Tax Return

A document filed with a tax authority that reports income, expenses, and other pertinent tax information, used to calculate tax liability.