Asked by Krystin Swart on Mar 10, 2024

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Accruals are spontaneous,but,unfortunately,due to law and economic forces,firms have little control over the level of these accounts.

Accruals

The accounting process of recognizing revenues and expenses when they are incurred, regardless of when cash transactions occur.

Economic Forces

Factors such as inflation, interest rates, and unemployment that influence the performance of the economy and impact financial markets.

  • Understand the impact of working capital strategies on a company's fiscal well-being and operational activities.
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EC
Evelyn Chudrial

Mar 10, 2024

Final Answer :
True
Explanation :
Accruals are a result of accounting rules and economic transactions, such as revenue earned but not yet received or expenses incurred but not yet paid. Firms can't control the occurrence of these transactions, and therefore have limited control over the level of their accruals.