Consider the Following Events for Betterment Incorporated:
January 1 $\quad$

question 95

Multiple Choice

Consider the following events for Betterment Incorporated:
January 1 $\quad$ Betterment purchases gasoline for $\$ 200$ on account.
January 7 $\quad$ Betterment advertises lawn mowing services for $\$ 100$ per lawn.
January 9 $\quad$ Betterment signs up 8 customers who pay a total of $\$ 800$ cash.
January 12 $\quad$ Betterment mows the lawns of the 8 customers and all gasoline purchased on January 1 is used.
January 13 $\quad$ Betterment pays for the gasoline purchased on January 1.
Under accrual-basis accounting,what is the appropriate day to record the expenses related to the gasoline?

• A)January 1.
• B)January 7.
• C)January 12.
• D)January 13.

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Definitions:

Probability

An indicator of an event's occurrence probability, given as a value from 0 to 1.

Disjunction

A logical operation that forms a compound statement from two statements, true if at least one of the statements is true.

Mutually Exclusive

Two or more events that cannot occur at the same time.

Compatible

Two events are compatible if they could both occur.