Which of the Following Is Correct Regarding Accrual Accounting

question 71

Multiple Choice

Which of the following is correct regarding accrual accounting?

• A)Adjusting the accounts is a technique used to accomplish accrual accounting.
• B)Revenues are recorded when received.
• C)Expenses are recorded when earned.
• D)Net income is the difference between cash receipts from customers and cash payments for expenses.

---

Definitions:

Marginal Product

The additional output that results from using one more unit of a factor, keeping other factors constant.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor, such as labor or capital, in the production process, critical for decision-making in resource allocation.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor input, considering other factors constant.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.