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:

Spearman's Theory

A theory of intelligence proposing that general intelligence (g factor) underlies all cognitive abilities, thus explaining overall performance on mental ability tests.

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A professional specializing in diagnosing and treating mental health issues, employing various therapeutic techniques to support emotional and mental well-being.