Under Accrual-Basis Accounting

question 115

Multiple Choice

Under accrual-basis accounting

• A) cash must be received before revenue is recognized.
• B) net income is calculated by matching cash outflows against cash inflows.
• C) events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.
• D) the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under IFRS.

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Definitions:

Enkephalins

Are pentapeptides involved in regulating nociception in the body; they function as neurotransmitters or neuromodulators.

Dynorphins

A class of opioid peptides produced in many parts of the brain, known for their role in modulating pain, emotion, stress, and addiction.

Interleukin-2

A type of cytokine signaling molecule in the immune system, essential for the growth, proliferation, and differentiation of T cells.

Prolactin

A hormone produced by the anterior pituitary gland that stimulates milk production in mammals after childbirth.