Which One of the Following Is a Required Characteristic of Accruals

question 94

Multiple Choice

Which one of the following is a required characteristic of accruals and deferrals?

• A)An asset or a liability will always be affected.
• B)Cash is either increased or decreased as a result of recording an accrual or deferral.
• C)Accruals record revenues, and expenses record deferrals.
• D)An asset and an expense item will always be affected.

Understand the concept of deadweight loss and how taxes contribute to it.

Analyze the impact of taxes on market size and participant behavior.

Understand the difference in the economic effects of taxes imposed on buyers versus sellers.

Learn the relationship between elasticity of demand/supply and the deadweight loss from taxation.

---

Definitions:

Mediation

A process where a neutral third party helps disputing parties reach a voluntary, negotiated agreement.

Negotiation

A dialogue between parties aimed at reaching a mutual agreement or resolving differences.

Mediation

A form of alternative dispute resolution where a neutral third party helps the disputing parties reach a mutually satisfactory agreement.

Arbitration

A method of dispute resolution where an impartial third party makes a binding decision to resolve a conflict outside of court.