Many Current Liabilities Are Affected by Accrual Accounting Entries

question 27

Multiple Choice

Many current liabilities are affected by accrual accounting entries.This happens because:

• A)liabilities are usually paid when they are incurred.
• B)accrual accounting involves recognizing liabilities when expenses have been incurred but not yet paid.
• C)the only way to reduce a liability account balance is with an adjusting entry.
• D)accrual accounting frequently involves recognizing liabilities before they are incurred.

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