Accruals Are Needed When an Unrecorded Expense Has Been Incurred

question 91

True/False

Accruals are needed when an unrecorded expense has been incurred or an unrecorded revenue has been earned.

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Definitions:

Substitute Good

A product or service that can be easily replaced with another by consumers if it becomes too expensive or is unavailable.

Suppliers

Entities that provide goods or services to another company or individual, often as part of a supply chain or market.

Laptops

Portable personal computers with a clamshell form factor, suitable for mobile use and equipped with a screen and alphanumeric keyboard.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, often considered the market-clearing price.