Most Accounting Policy Choices Affect Both the Income Statement and the Balance

question 8

Multiple Choice

Most accounting policy choices affect both the income statement and the balance sheet.Select the income statement account(s) that would be affected by a policy choice at the same time as the accounts receivable balance sheet account.

• A) revenue,bad debts expense
• B) cost of goods sold expense
• C) depreciation or amortisation expense
• D) various expense accounts.

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Definitions:

Economic Policy

Strategies and actions taken by the government to manage its economic affairs, aiming at objectives like sustainable growth, high employment, and stable prices.

Utility

A measure of the satisfaction, usefulness, or value that a consumer receives from consuming a product or service.

Subjective Benefit

The personal value or advantage gained by an individual from a product or service, which varies from person to person.

Course of Action

A plan or strategy intended to accomplish a specific goal or resolve a problem.