Which of the Following Statements Are Correct? for Accrual-Basis Accounting

question 172

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:

Nonstress Test

A prenatal test used to check on a baby's health by measuring heart rate and response to movement.

Fetal Distress

Fetal distress is a term used to describe signs before and during childbirth indicating that the fetus is not well, often due to inadequate oxygen supply.

Oxygen

A chemical element essential for respiration in most living organisms and used in various industrial applications; it is the most abundant element in the Earth's crust.

Maternal Serum Screen

A blood test performed on pregnant women to evaluate the risk of certain birth defects or chromosomal abnormalities in the fetus.