Which of the Following Is an Application of Accrual Accounting

question 113

Multiple Choice

Which of the following is an application of accrual accounting?

• A)Depreciating a building as quickly as allowed by income tax regulations.
• B)Recording utilities expense in the accounting period covered by the monthly bill.
• C)Expensing a machine in its entirety when purchased.
• D)Recording revenue at the time payment is received.

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Definitions:

Excise Tax

A tax levied on specific goods, services, and activities, such as alcohol, tobacco, and gasoline, often to discourage their use or generate revenue for a specific purpose.

Demand for Pumpkins

denotes the consumers' willingness and ability to purchase pumpkins at various prices, influenced by factors such as seasonality, price, and consumer preferences.

Supply Curve

A graphical representation showing how the quantity of goods supplied by producers changes in response to different price levels, typically sloping upwards.

Quantity of Labor Supplied

The total hours that workers are willing and able to work at a given wage rate, in a given period.