If Blue Company Records Expenses in the Time Period When

question 37

Multiple Choice

If Blue company records expenses in the time period when incurred,they are using the:

• A)cash basis of accounting.
• B)accrual basis of accounting.
• C)adjustment basis of accounting.
• D)expense basis of accounting.

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Definitions:

Substitutes

Products or services that can be used in place of each other based on their utility.

Price Elasticity

Price elasticity measures how the quantity demanded of a good is affected by a change in its price, with high elasticity indicating sensitivity to price changes.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specified period.

Elastic

Describes a situation where the quantity demanded or supplied of a good is sensitive to changes in its price.