Which Statement Is True Regarding Accounting Accruals

question 10

Multiple Choice

Which statement is true regarding accounting accruals?

• A)Errors or changes in accounting policy that affect non-current items like equipment will result in follow-through changes over a relatively short period.
• B)The purchase of equipment involves an initial accrual to record the asset followed by accrual reversals in the form of depreciation expense and derecognition of the asset upon disposal.
• C)Operating activities generally have relatively long cash cycles.
• D)Financing and investing activities generally have relatively short cash cycles.

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Definitions:

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

Correlation

A statistical measure that describes the extent to which two variables change together, but does not imply causation.

Correlational Study

A type of research design where a researcher examines the relationship between two or more variables without manipulating them, determining whether and how they are related.

Double-Blind Experiment

A study or experiment in which neither the participants nor the researchers know who is receiving a particular treatment, to prevent bias.