Accrual Accounting Is Used Because

question 39

Multiple Choice

Accrual accounting is used because

• A)cash flows are considered less important.
• B)it provides a better indication of ability to generate cash flows than the cash basis.
• C)it recognizes revenues when cash is received and expenses when cash is paid.
• D)none of the above.

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Definitions:

Factor Weights

Numbers assigned to variables based on their importance, used in mathematical models and decision-making processes to reflect the relative significance of different factors.

Variable Cost

Charges that adjust in relation to the amount of goods produced or level of enterprise activity.

Output Volume

The quantity of goods or services produced by a company, industry, or economic sector during a specified period.