Which of the Following Expressions Correctly Describes When Revenues and Expenses

question 16

Multiple Choice

Which of the following expressions correctly describes when revenues and expenses are recognized under accrual basis accounting?

• A) Revenues when cash is received; expenses when cash is paid
• B) Revenues when cash is received; expenses when the expense is incurred
• C) Revenues when the revenue is earned; expenses when the expense is incurred
• D) Revenues when the revenue is earned; expenses when cash is paid

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Definitions:

Slowing the Disease

Strategies or treatments aimed at decelerating the progression of a disease, extending quality of life and duration of functionality.

Wandering Behaviour

Typically associated with dementia or other cognitive impairments, this term refers to aimless or purposeless moving about without a clear destination or intention.

Mild Cognitive Impairment

A condition involving problems with memory or other mental functions that are greater than normal for a person’s age but not severe enough to be diagnosed as dementia.

Social-emotional Selectivity Theory

A theory suggesting that as people age, they prioritize emotionally meaningful goals and relationships due to an increasing awareness of the finiteness of life.