Accruals Occur When Cash Flows

question 136

Multiple Choice

Accruals occur when cash flows:

• A) Occur before expense recognition.
• B) Occur after revenue or expense recognition.
• C) Are uncertain.
• D) May be substituted for goods or services.

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Definitions:

Crisis Management

The process by which a business or organization deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders.

Formal Programs

Structured and officially sanctioned plans or initiatives designed to achieve specific goals within an organization, such as training employees or improving processes.

Nonprogrammed Decisions

Are created to deal specifically with a problem at hand.

Reordering Inventory

A management process that involves replenishing stock to ensure sufficient quantities are available to meet customer demands.