An Expense Incurred in 2016 Is Not Paid Until 2017

question 92

Multiple Choice

An expense incurred in 2016 is not paid until 2017.Using the accrual basis of accounting,the expense should appear on:

• A) the 2017 income statement
• B) the 2016 income statement
• C) neither the 2016 nor 2017 income statement
• D) both the 2016 and 2017 income statements

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Definitions:

Integration

The process of combining or coordinating separate elements into a unified whole, often used in technical and organizational contexts.

Elaboration

The process of adding more detail or information to something, often to clarify or explain further.

Methods

Different ways or strategies of accomplishing a task or solving a problem.

Mechanistic

An organizational structure that is hierarchical and bureaucratic, with clear lines of authority, formal rules, and procedures.