Something of Value, Such as Products, Services and Money, Is

question 117

Multiple Choice

Something of value, such as products, services and money, is called a(n)

• A)Accounting equation.
• B)Business transaction.
• C)Source document.
• D)Economic consideration.
• E)Business event.

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Definitions:

Accrual Accounting

A method in accounting where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Payback Method

A capital budgeting technique that calculates the time needed to recoup the initial investment in a project.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Accrual Return

The return on investment that is recognized in financial statements before any cash changes hands.