Which of the Following Is TRUE

question 97

Multiple Choice

Which of the following is TRUE?

• A) Accrual accounting is required by generally accepted accounting principles.
• B) Accrual accounting records expenses when incurred. Cash-basis accounting records expenses when cash is paid.
• C) Accrual accounting records revenue when services are rendered. Cash-basis accounting records revenue when cash is received.
• D) All of the above are true.

Analyze the relationship between budgeted sales, production, and cash disbursements.

Calculate predetermined overhead rates and understand their application in budgeting.

Prepare and interpret a budgeted balance sheet including the estimation of accounts payable for raw materials.

Compute budgeted direct labor costs and its impact on product costs.

---

Definitions:

Confounding

Confounding occurs when an outside influence affects both the dependent and independent variables in an experiment, potentially leading to false assumptions about the relationship between them.

Temporal Precedence

Part of causal inference; the cause occurs before the effect.

Workplace Lighting

The arrangement and type of lighting in a work environment, which can affect productivity, comfort, and safety of workers.

Employee Productivity

A measure of the efficiency of a worker or a group of workers in producing goods or services.