All of the Following Can Be Used to Describe Reliability

question 36

Multiple Choice

All of the following can be used to describe reliability of accounting information except:

• A) biased.
• B) credible.
• C) verifiable.
• D) supported by source documents.

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Definitions:

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid.

Income Taxes Payable

Liabilities owed to the government for income taxes, not yet paid by the company.

Income Tax Expense

The total amount of income tax a company is obligated to pay to the government, reported on its income statement.