Where the Amount of Cash Paid for Office Expenses During

question 48

Multiple Choice

Where the amount of cash paid for office expenses during the year is less than the amount of office expenses recognised in the income statement under the accrual accounting approach, the difference is recorded in the balance sheet as:

• A) accrued office expenses (liability).
• B) prepaid office expenses (liability).
• C) prepaid office expenses (asset).
• D) accrued office expenses (asset).

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Definitions:

Emergency Squad

A specialized team or group of services that respond to and manage emergencies.

Bystander Effect

One reason people fail to help strangers in distress: The larger the group a person is in, the less likely he is to help, partly because no one in the group thinks it is up to him to act.

Commotion

Commotion refers to a state of noisy confusion or disorder.

Bystander Effect

The social psychological phenomenon that individuals are less likely to offer help to a victim when other people are present, often due to the diffusion of responsibility.