Which of the Following Statements Is Correct

question 57

Multiple Choice

Which of the following statements is correct?

• A)Under the accrual basis of accounting, revenue is recorded in the period in which it is received.
• B)Under the accrual basis of accounting, revenue is recorded in the period in which it is earned.
• C)Under the accrual basis of accounting, revenue is recorded in the period in which it is paid.
• D)Under the accrual basis of accounting, expenses are recorded in the period in which they are paid.

---

Definitions:

Voluntary Association

A group formed by individuals who voluntarily come together to pursue a common interest or goal.

Co-own

To have joint ownership or share ownership rights of a property, asset, or entity with one or more individuals or entities.

Corporation

A legal entity that is separate from its owners, who share limited liability protection, and is recognized by law as having rights and responsibilities.

Profit

The right to go onto someone’s land and take part of the land or a product of it away from the land.