An Accrual Refers to an Event

question 114

Multiple Choice

An accrual refers to an event:

• A) where the expense or revenue is recorded after the cash settlement
• B) where the liability is recorded after the cash settlement
• C) where the expense or revenue is recorded before the cash settlement
• D) where the asset is recorded after the cash settlement

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Definitions:

Special Act Corporation

A corporation that is created by a specific act of a legislature, tailored for a particular purpose or corporation.

Statutory Corporation

A corporation created by statute, typically owned by the government, to carry out specific governmental or public functions.

Oppression Remedy

Legal relief available to shareholders or members of a corporation when their rights are unfairly prejudiced or disregarded by others in power within the company.

Derivative Action

A legal mechanism allowing a shareholder to sue or take legal action on behalf of a corporation to protect the corporation's interests.