[amp_mcq option1=”take over” option2=”commencement” option3=”year end” option4=”all of these” correct=”option4″]<\/p>\n
The correct answer is: D. all of these<\/p>\n
The date of take over, commencement, and year end are not considered for allocation of income and expenses. This is because the allocation of income and expenses is based on the accrual basis of accounting, which means that income and expenses are recognized when they are earned or incurred, regardless of when they are received or paid.<\/p>\n
The date of take over is the date on which a company takes over another company. The date of commencement is the date on which a company starts its business. The year end is the end of a company’s financial year.<\/p>\n
For example, if a company sells goods on credit on December 31, 2022, the revenue from the sale will be recognized in 2022, even though the customer may not pay for the goods until 2023. Similarly, if a company incurs expenses on December 31, 2022, the expenses will be recognized in 2022, even though the company may not pay for the expenses until 2023.<\/p>\n
The accrual basis of accounting is used because it provides a more accurate picture of a company’s financial performance than the cash basis of accounting, which recognizes income and expenses when they are received or paid.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”take over” option2=”commencement” option3=”year end” option4=”all of these” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-45877","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n