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:

Skewed

Describes a distribution that is not symmetrical, with data points that are more frequent on one side than the other.

Acres

A unit of area used primarily in the United States, equal to 4,840 square yards or about 4,047 square meters.

Stem-and-Leaf Display

A graphical method of displaying quantitative data to observe its distribution, resembling a histogram turned on its side for clearer numeric value reading.

Diastolic

refers to the blood pressure in the arteries when the heart rests between beats.