Factors That Shape an Accounting System Include the

question 10

Multiple Choice

Factors that shape an accounting system include the

• A) nature of the business.
• B) size of the firm.
• C) volume of data to be handled.
• D) All of these answer choices are correct.

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Definitions:

Interest Payable

A liability account showing the amount of interest expense that has been incurred but not yet paid.

Fiscal Period

A specific time period used for accounting purposes and financial reporting, usually spanning a year, but can also be a quarter or month.

Adjusting Entry

Bookkeeping entries executed at the termination of an accounting cycle, intended to apportion income and outlays to their respective periods of occurrence.

Accrue Wages

The process of recognizing wages that have been earned by employees but have not yet been paid out by the company.