1. Under accrual basis accounting revenue are recognized when and expense are recognized when _______.
Inccured; earned
Earned; incurred
cash is paid; cash is received
cash is recieved; cash is paid
2. Which of the following is a capital expenditure?
Sales tax paid in conjunction with the purchase of office equipment.
Monthly rent of a delivery truck.
Monthly fuel costs for a truck owned by the company.
Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket.