Which of the Following Statements Are Correct

question 135

Multiple Choice

Which of the following statements are correct?
For accrual-basis accounting:
(1) record revenues when earned
(2) record expenses when cash is paid For cash-basis accounting:
(3) record revenue when cash is received
(4) record expenses when benefit is received

• A)(1)and (4)
• B)(2)and (3)
• C)(1)and (3)
• D)(2)and (4)

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Definitions:

Present Value

The present value of a future amount of money or series of cash payments, calculated using a particular return rate.

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities at any given time.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a specific period.

World's Population

The total number of people living on Earth at any given time, an ever-changing figure due to births, deaths, and migration.