Which of the Following Statements About Accrual Accounting Is NOT

question 31

Multiple Choice

Which of the following statements about accrual accounting is NOT true?

• A) The impact of transactions on the financial statements is recognised when the cash is received or paid.
• B) The financial statements include estimates.
• C) Judgements made by accountants affect profit.
• D) Transactions are recognised at the time when revenue and expenses occur.

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Definitions:

Hypothesis Testing

A method in statistics to decide whether to accept or reject a hypothesis based on sample data, to determine the likelihood that a parameter related to the population is true.

Research Hypothesis

A specific, testable prediction about the expected outcome of a study.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Samples

Subsets of a population selected for measurement, observation, or questioning to make statistical inferences about the whole population.