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

question 21

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 accrued expenses 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:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Note Payable

A written promise to pay a specific sum of money, usually with interest, on a certain date or dates to the holder of the note.

Accounts Payable

Liabilities representing amounts owed to creditors for goods and services received but not yet paid for.