Under US GAAP, ________ Is an Example of a Period-Of-Time Element

question 186

Multiple Choice

Under U.S. GAAP, ________ is an example of a period-of-time element and appears on the ________.

• A) accounts receivable; balance sheet
• B) depreciation expense; statement of shareholders' equity
• C) salary payable; balance sheet
• D) sales revenue; income statement

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Working Capital

The difference between a company's current assets, like cash and accounts receivable, and its current liabilities, such as accounts payable, representing the short-term financial health and operational efficiency of a company.

Good Faith

Good Faith refers to an honest intention to act without taking an unfair advantage over another party, often assumed in the context of negotiations or business dealings.

Liability

A financial obligation or debt that an individual or company owes.