Which of the Following Economic Events Would Be Captured by an Accrual

question 81

Multiple Choice

Which of the following economic events would be captured by an accrual accounting system, but not by a cash accounting system?

• A)Receipt of payment for a previous sale made on credit.
• B)Payment of an amount owing on a previous purchase.
• C)Payment of dividends to shareholders.
• D)Use of a previously purchased piece of equipment in production.

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Definitions:

Willing To Pay

The maximum amount a consumer is prepared to spend on a good or service, reflecting the perceived value or utility gained from the purchase.

Ticket

A token or voucher that entitles the holder to admission to an event, activity, or service.

Consumer Surplus

the difference between what consumers are willing to pay for a good or service and what they actually pay.

Market Price

The price at which a product or service is sold in the open market, determined by supply and demand.