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

question 87

Multiple Choice

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

• A)Sale of a good for cash.
• B)Purchase of supplies for cash.
• C)Purchase of a piece of equipment with a note payable.
• D)Purchase of shares for cash by a shareholder.

---

Definitions:

Assembly Rate

The speed or rate at which a product is assembled, which can affect production efficiency and output.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process of a company's products.

Finishing Rate

The pace at which a production process or construction project is completed, often measured in units per hour or days per project phase.

Machine Hours

A measure of the amount of time a machine is operated, used in cost accounting to allocate expenses to products.