Which Statement Concerning Accrual Accounting Is True

question 16

Multiple Choice

Which statement concerning accrual accounting is true?

• A) Profit is the excess of cash inflows from income over cash outflows for expenses.
• B) Income from sales is recognised in the period when the cheque is cashed.
• C) For most businesses the cash approach gives a better measure of economic performance than does the accrual approach.
• D) Income is recognised in the period when the flow of economic benefits can be reliably measured.

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Definitions:

Slack Value

The difference between the achieved value and the maximum possible value in optimization problems, indicative of unused resources.

Slack Value

The difference between the actual value of a constraint and the value of that constraint under optimal conditions.

Total Reservations

Total Reservations represent the complete number of bookings or reservations made for a service, such as hotel rooms or flights, at a given time.

Latest Start Time

The latest possible time a project or task can begin without delaying the project completion.