When You Pay for Some Purchase with a Check, Cash

question 207

True/False

When you pay for some purchase with a check, cash must be transferred to another account to pay for the check.

---

Definitions:

Accrue

The process of recognizing revenue or expenses that have been earned or incurred but not yet officially recorded or received in cash.

Total Liabilities

The sum of all financial obligations or debts a company owes, including both short-term and long-term liabilities.

Incurred Expense

Expenses that have been recognized in the accounting period in which they are incurred, regardless of when the payment is made.

Adjusting Process

An analysis and updating of the accounts when financial statements are prepared.