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:

Offeror Can Revoke

The legal principle that allows the person making an offer (offeror) to withdraw that offer before it is accepted, subject to certain conditions.

Repudiating It

The process of formally rejecting or disavowing a previously held position or agreement.

Offer Can Be Revoked

The proposition that an offer can be withdrawn by the offeror before it is accepted by the offeree, making it legally void.

Performance of an Act

The execution or accomplishment of an action, task, or function, often specified in a legal context or contractual obligation.