A Company Using Accrual Accounting Pays $12,000 for a Television

question 111

Multiple Choice

A company using accrual accounting pays $12,000 for a television advertising campaign in November, 2012. Commercials will run evenly in November, December, and January. How much expense will be reported on an income statement prepared for the year ended December 31, 2012?

• A) $0
• B) $4,000
• C) $8,000
• D) $12,000

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Definitions:

Defense Mechanism

Unconscious mechanisms employed to shield oneself from anxiety generated by thoughts or feelings deemed unacceptable.

Denial

An ego defense mechanism in which a person fails to acknowledge unacceptable thoughts, feelings, or actions.

Impulses

Sudden, involuntary urges to act or react that can drive behavior without conscious planning.

Ego

In psychoanalytic theory, the part of the psyche that mediates between the desires of the id, the realities of the external world, and the moral standards of the superego.