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In an Accrual Accounting System, If You Purchase and Receive

Question 3

Multiple Choice

In an accrual accounting system, if you purchase and receive $50 worth of chicken on January 31, but will not be billed for the chicken until February 6, and the chicken remains in inventory until used on February 2, what date is the expense for the chicken actually accrued?


A) January 31
B) February 6
C) February 2
D) none of these answers is correct

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