An Expense Incurred in 2019 Is Not Paid Until 2020

question 102

Multiple Choice

An expense incurred in 2019 is not paid until 2020. Using the accrual basis of accounting, the expense should appear on:

• A) both the 2019 and 2020 income statements
• B) neither the 2019 nor 2020 income statement
• C) the 2019 income statement
• D) the 2020 income statement

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Definitions:

Yerkes-Dodson Law

A theory suggesting there is an optimal level of arousal for the best performance of any task; too little or too much arousal can negatively affect performance.

Appraisal Theory

A theory in psychology which states that our emotional response to an event is shaped by our perception and evaluation of the event.

Transactional Model of Stress

A framework that emphasizes the individual's perception and appraisal of a stressful event as crucial in determining their stress response.

Attribution Theory

A psychological theory that explains how individuals interpret and assign causes to behaviors and events around them.