Which of the Following Accounts Would Be Used Under the Accrual

question 49

Multiple Choice

Which of the following accounts would be used under the accrual method of accounting,but NOT under the cash-basis method of accounting?

• A)Equipment
• B)Salary expense
• C)Cash
• D)Unearned revenue

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Definitions:

Insignificant Influence

Refers to a situation where an investor does not have the power to govern the financial and operating policies of an investee, typically resulting in the investment being accounted for using the cost method or fair value method.

Stock Investments

Financial assets representing ownership interest in companies; shareholders may receive dividends and have voting rights.

Cash Dividends

Payments made by a corporation to its shareholders as a distribution of profits in the form of cash.

Net Income

The remaining profit for a company after removing all costs and tax obligations from the overall revenue.