Which of the Following Accounts Is Used to Record an Accrual

question 20

Multiple Choice

Which of the following accounts is used to record an accrual for expenses?

• A)Prepaid rent.
• B)Unearned revenues.
• C)Accounts receivable.
• D)Interest payable.

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Definitions:

Henry George

A 19th-century economist known for his belief that people should own the value they produce themselves, but that land and natural resources should belong to all (Georgism).

Allocative Efficiency

A state of resource allocation in which it is impossible to make any one individual better off without making at least one individual worse off.

Incentive Function

The role of rewards or penalties in motivating individuals or entities to behave in certain ways.

Rationing Function

The ability of market prices to allocate scarce resources among competing uses, ensuring that only those willing and able to pay the price can obtain the good or service.