What Is the Effect of an Accrual in Respect of Electricity

question 10

Multiple Choice

What is the effect of an accrual in respect of electricity used during the period on the statement of financial position, the income statement and the cash flow statement?

• A) No effect on the statement of financial position, charge as an expense to the income statement, no effect on the cash flow statement
• B) No effect on the statement of financial position, charge as an expense to the income statement, increase the cash outflows in the cash flow statement
• C) Increase the current liabilities in the statement of financial position, charge as an expense to the income statement, no effect on the cash flow statement
• D) Increase the current assets and current liabilities in the statement of financial position, no effect on the income statement, no effect on the cash flow statement

---

Definitions:

Innovator

An individual or organization that introduces new ideas, products, services, or methods, often leading the way in developments within their field.

Innovators

Individuals or organizations that introduce new ideas, products, or methods, often leading change and development in their respective fields.

Marketers

Professionals or organizations engaged in promoting and selling products or services, including market research and advertising.

New Product Development

The process of bringing a new product to the market, involving idea generation, design, testing, and launch.