Accrual Accounting

question 2

Multiple Choice

Accrual accounting:

• A)is designed to match revenues and expenses.
• B)results in the balance sheet showing the fair value of the entity's assets.
• C)means that expenses are recorded when they are paid.
• D)cannot result in the entity having net income unless cash is received from customers.

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Definitions:

Neutral Party

An unbiased individual or entity not involved in the interests of any of the disputing parties, often used in negotiations or conflict resolution.

Peer Review

Process for resolving disputes by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute.

Outplacement Counselor

A professional who assists departing employees transition to new jobs or careers, often provided by the employer as part of a severance package.

Professional Counselor

A licensed individual who provides guidance and support to people dealing with personal, social, or psychological issues.