Using Accrual Accounting, Expenses Are Recorded and Reported Only

question 92

Multiple Choice

Using accrual accounting, expenses are recorded and reported only

• A) when they are incurred, whether or not cash is paid
• B) when they are incurred and paid at the same time
• C) if they are paid before they are incurred
• D) if they are paid after they are incurred

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Definitions:

Accounting Science

The discipline that studies the concepts, rules, and processes followed in accounting to collect, analyze, verify, and report financial information.

Financial Fraud

Intentional acts of deception involving financial transactions for the purpose of personal gain, such as embezzlement, insider trading, and fraudulent financial reporting.

Financial Statements

Compiled documents that present an entity's financial activity and condition, including the balance sheet, income statement, and cash flow statement.

Economic Opportunities

Chances or prospects available in the marketplace that can lead to financial growth, business expansion, and employment generation.