Which One of the Following Statements Is True

question 3

Multiple Choice

Which one of the following statements is true?

• A)Accruals are adjustments that are recorded prior to the associated cash flow taking place.
• B)Cash is used in the accrual process.
• C)Accrual accounting recognizes revenues and expenses based on current period cash flows.
• D)Accrual accounting may use either two asset or two liability accounts.

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Definitions:

Ethical Decision-Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles and values.

Decision-Making Strategies

Approaches or methodologies used to select the best alternative from several options based on specific criteria or objectives.

Code of Ethics

A set of principles and guidelines designed to help professionals conduct business honestly and with integrity.

Ethical Audit

A systematic evaluation of an organization's adherence to moral principles and standards in its business operations and overall conduct.