If a Company Has Earned Income Which Has Not Been

question 51

Multiple Choice

If a company has earned income which has not been received in cash at the end of the accounting period an adjustment should be made which will:

• A) DR an expense account and CR cash.
• B) DR an income account and CR an asset account.
• C) DR cash and CR a liability account.
• D) DR an asset account and CR an income account.

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Definitions:

Vigour

A physical or mental strength, energy, or force, often seen as a component of workplace engagement that involves resilience and consistent effort.

Absorption

The process by which one substance becomes fully integrated into another, or the degree to which something is absorbed or assimilated.

Resilience

The capacity to recover quickly from difficulties; toughness and the ability to withstand and adapt to life’s challenges.

CSR Practices

Corporate Social Responsibility practices involve companies voluntarily exceeding legal requirements to benefit social and environmental causes.