Which of the Following Statements About Accrual Accounting Is NOT

question 31

Multiple Choice

Which of the following statements about accrual accounting is NOT true?

• A) The impact of transactions on the financial statements is recognised when the cash is received or paid.
• B) The financial statements include estimates.
• C) Judgements made by accountants affect profit.
• D) Transactions are recognised at the time when revenue and expenses occur.

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Definitions:

Tender Lifts

Equipment or processes used to lift goods or cargo, typically onto or off a ship or other vessel, often in the context of shipping and logistics.

Contract Specifications

Detailed terms and conditions outlined in a contract that specify the obligations, rights, and expectations of the parties involved.

Cover

A buyer’s or lessee’s purchase on the open market of goods to substitute for those promised but never delivered by the seller or lessor. Under the Uniform Commercial Code, if the cost of cover exceeds the cost of the contract goods, the buyer or lessee can recover the difference, plus incidental and consequential damages.

Remedies

Legal means for enforcing a right or redressing a wrong, including compensation, injunctions, and specific performance.