If an Expense Has Been Incurred but Will Be Paid

question 54

Multiple Choice

If an expense has been incurred but will be paid later,then:

• A)nothing is recorded on the financial statements.
• B)a liability account is created or increased and an expense is recorded.
• C)an asset account is decreased or eliminated and an expense is recorded.
• D)a revenue and an expense are accrued.

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Definitions:

Demand Curve

A graphical representation that shows the relationship between the price of a product and the quantity of the product demanded.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, signifying the relative change in demand due to price changes.

Price Elasticity

The degree to which demand for a particular item changes in response to price adjustments.

Gasoline Demanded

The total amount of gasoline that consumers are willing to buy at a given price, typically influenced by factors such as price and personal income.