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:

Disagreement

A situation where two or more parties have differing opinions, perspectives, or preferences regarding a particular issue or topic.

Identification

The process by which an individual aligns themselves with the values, beliefs, or behaviors of another group or individual, often as a way to feel a sense of belonging.

Leader Traits

Leader traits are the personal characteristics and attributes that contribute to an individual's capability to lead, influence, and guide others effectively.

Skills

The abilities and expertise a person has acquired through practice and education that enable them to perform specific tasks.