An Accrual Refers to an Event Where The

question 62

Multiple Choice

An accrual refers to an event where the:

• A)expense or revenue is recorded before the cash settlement.
• B)liability is recorded after the cash settlement.
• C)expense or revenue is not recorded after the cash settlement.
• D)asset is recorded only after the cash settlement.

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Definitions:

Annual Wage Base

The maximum amount of income that is subject to certain taxes or benefits calculations within a calendar year.

Loss Of Income

Financial detriment resulting from an inability to work due to injury, business interruption, or other reasons, leading to a temporary or permanent lack of earnings.

Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is a U.S. law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.

Overtime Provisions

Regulations that define the conditions under which employees are entitled to extra pay for working beyond the standard working hours.