What Is the Accounting Effect of Using the Accrual Basis

question 23

Multiple Choice

What is the accounting effect of using the accrual basis of accounting?

• A)revenues and expenses are recognized when cash is received.
• B)revenues are recognized when earned,and expenses are recognized when cash is paid
• C)revenues are recognized when earned and expenses are recognized when they are incurred
• D)revenues are recognized when cash is received,and expenses are recognized when incurred

---

Definitions:

Holt's Model

A forecasting technique that extends exponential smoothing to allow forecasting of data with a trend.

Trend Component

An underlying pattern in data that shows a persistent, general direction of movement over time.

Simple Exponential Smoothing

A time series forecasting method for univariate data that applies decreasing weights to past observations as they age.

Mean Absolute Deviation

A statistical measure of the dispersion or variability in a data set, calculated as the average distance between each data point and the mean of the data set.