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Which of the Following Economic Events Would Be Captured by an Accrual

Question 2

Multiple Choice

Which of the following economic events would be captured by an accrual accounting system, but not by a cash accounting system?


A) Receipt of payment for a previous sale made on credit.
B) Payment of an amount owing on a previous purchase.
C) Payment of dividends to shareholders.
D) Use of a previously purchased piece of equipment in production.

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