Which of the Following Accounts Would Be Used Under the Accrual

question 161

Multiple Choice

Which of the following accounts would be used under the accrual basis of accounting,but not under cash basis accounting?

• A) Cash
• B) Unearned Revenue
• C) Service Revenue
• D) Salaries Expense

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Definitions:

Cost of Capital

This refers to the total cost of funds used for financing a business, including the cost of equity and debt.

Risk Level

The degree of uncertainty and the potential financial loss associated with an investment or business decision.

Net Present Value

An evaluation metric that analyzes the profitability of a projected investment by discounting future cash flows to their present value and subtracting the initial investment cost.

Project Rate of Return

The expected return on an investment, estimating the profitability of a project or investment.