Accrual Accounting Is an Accounting System in Which ________

question 92

Multiple Choice

Accrual accounting is an accounting system in which ________.

• A)measurement of income is NOT based on cash receipts and cash disbursements
• B)measurement of income is based on cash receipts and cash disbursements
• C)all businesses prepare reports required by the FASB
• D)there are no timing differences

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Definitions:

Pulmonary Fibrosis

A lung disease characterized by damage and scarring of lung tissue, leading to severe breathing difficulties.

Emphysema

A long-term, progressive lung disease that primarily causes shortness of breath due to the over-inflation of the alveoli (air sacs in the lungs).

Cystic Fibrosis

A genetic disorder affecting the exocrine glands, leading to thick mucus buildup in the lungs and digestive tract.

Alveolar Air

The air present within the alveoli, the tiny air sacs in the lungs where gas exchange occurs.