The Method of Accounting That Records Revenues ONLY When Cash

question 147

Multiple Choice

The method of accounting that records revenues ONLY when cash is received is the:

• A)deferral method.
• B)cash-basis method.
• C)accrual-basis method.
• D)hybrid method.

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Definitions:

Cumulative Summary

A consolidated report that aggregates data or information over a period, providing a total overview.

FICA Taxes

Taxes imposed on both employees and employers to fund Social Security and Medicare, based on a percentage of earned wages.

Payroll Tax Expense

Payroll tax expense includes taxes imposed on employers or employees, and is based on the wages, salaries, and tips paid to the employees.

State Unemployment Taxes

Taxes imposed by state governments on employers to fund unemployment insurance benefits for laid-off workers.