Which of the Following Is Correct Regarding Accrual Accounting

question 159

Multiple Choice

Which of the following is correct regarding accrual accounting?

• A)Adjusting the accounts is a technique used to accomplish accural accounting.
• B)Revenues are recorded when received.
• C)Expenses are recorded when earned.
• D)Net income is the difference between cash receipts from customers and cash payments for expenses.

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Definitions:

Repression

A psychological process where individuals unconsciously block out painful or unpleasant memories, thoughts, or desires.

Cognition

The process of learning and understanding obtained through mental activity, experiences, and using the senses.

Heredity

The biological process whereby genetic factors are transmitted from one generation to the next.

Purpose

The reason for which something is done or created, or for which something exists.