Which of the Following Events Involves an Accrual

question 70

Multiple Choice

Which of the following events involves an accrual?

• A) a cash payment received from a customer before services are provided
• B) supplies purchased with cash but not yet used
• C) interest earned but not received
• D) A and C

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Definitions:

Market System

An economic system in which decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.

Property Rights

Legal rights to possess, use, and dispose of assets including real property (land and buildings) and intellectual property.

Public Policy

Government actions, laws, and regulations that reflect the attitudes and rules for the public implemented by different levels of government.

Environmental Concerns

Issues related to the protection of the natural environment due to impacts from human activity, often requiring policy and individual actions to address.