Under the Accrual Basis of Accounting

question 70

Multiple Choice

Under the accrual basis of accounting

• A)cash must be received before revenue is recognized.
• B)profit is calculated by matching cash outflows against cash inflows.
• C)the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared.
• D)events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.

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Definitions:

Terracotta Figures

Clay-based sculptures that are fired to become hard, often associated with historical or cultural artifacts, such as the Terracotta Army of China.

Great Mosque

A term generally referring to significant and historically important Islamic places of worship, often characterized by their architectural grandeur and cultural significance.

Adobe

The clay used to make a kind of sun-dried mud brick of the same name; a building made of such brick.

Lydenburg Heads

A set of terracotta sculptures discovered in Lydenburg, South Africa, believed to date back to the 5th century AD, representing some of the earliest known African art.