An Expense Incurred in 2011 Is Not Paid Until 2012

question 60

Multiple Choice

An expense incurred in 2011 is not paid until 2012. Using the accrual basis of accounting, the expense should appear on:

• A) the 2011 income statement.
• B) the 2012 income statement.
• C) neither the 2011 nor the 2012 income statement.
• D) both the 2011 and 2012 income statements.

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Definitions:

Visual Aid

Any visual element such as charts, graphs, images, or videos used in communications or presentations to support or enhance the message.

Empathize

The ability to understand and share the feelings of another, crucial in effective communication and relationship building.

Confidently

Displaying assurance, self-reliance, or firmness in one's abilities or qualities.

Neutral Audience

An audience that has no prior stance, judgment, or emotional bias regarding the subject matter of a presentation or discussion.