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.

Understand the timing of cash flows related to sales and purchases.

Analyze the effect of different credit terms and payment policies on cash budgeting.

Understand the calculations involved in the budgeting process for sales, collections, and purchases.

Calculate cost of goods sold, including desired ending inventory levels and payment timing.

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Definitions:

Episodic Buffer

A component of the working memory model that integrates information from different sources and modalities, maintaining a sense of chronological flow.

Phonological Loop

A component of working memory model that deals with the brief storage of verbal content, including both words and numbers.

Self-terminating Search

A search strategy that stops as soon as a solution to the problem is found.

Phonological

Relating to the system of sounds within a language and the rules governing them.