Which of the Following Circumstances Would Result in a Decrease

question 15

Multiple Choice

Which of the following circumstances would result in a decrease in income under the accrual basis but would not result in a decrease in income under the cash basis?

• A)Purchase of inventory on account
• B)Payment of 2 months' rent in advance
• C)The expiration of prepaid rent
• D)The return of defective inventory purchased on account,where full credit was given
• E)The payment of the current period's utility bill

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Definitions:

Average Arrival Rate

A metric used to measure the rate at which entities (customers, goods, etc.) arrive at a facility or system over a specified period.

Average Service Rate

The average number of customers or units that can be processed over a certain time frame in a service system.

Expected to Stay

An estimation of the duration or likelihood that an individual or item remains in a particular state or location.

M/D/1

M/D/1 is a queueing model designation indicating a system with a Poisson arrival process (M), deterministic service times (D), a single server (1), and exponential service times.