Many Current Liabilities Are Affected by Accrual Accounting Entries

question 9

Multiple Choice

Many current liabilities are affected by accrual accounting entries. This happens because:

• A) liabilities are usually paid when they are incurred.
• B) accrual accounting involves recognizing liabilities before they are paid.
• C) the only way to reduce a liability account balance is with an adjusting entry.
• D)accrual accounting frequently involves recognizing liabilities before they are incurred.

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Definitions:

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