Asked by Sylvanna Riazzo on Jul 09, 2024

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Virtually all accruals are best guess estimates of obligations arising from merchandise purchases for which vendor invoices have not yet been received.

Accruals

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

Vendor Invoices

Documents issued by a supplier to the purchaser detailing the sale transaction and requesting payment.

  • Recognize the role and risks of accruals in financial management.
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MC
Matthew ColvinJul 16, 2024
Final Answer :
False
Explanation :
Accruals can also include other expenses such as wages, taxes, and interest that have been incurred but not yet paid, not just obligations from merchandise purchases.