If, During an Accounting Period, an Expense Item Has Been

question 8

Multiple Choice

If, during an accounting period, an expense item has been incurred and consumed but not yet paid for or recorded, then the end-of-period adjusting entry would involve

• A)a liability account and an asset account.
• B)an asset or contra asset account and an expense account.
• C)a liability account and an expense account.
• D)a receivable account and a revenue account.

Apply journal entry recording for various business transactions.

Analyze the impact of transactions on financial statements (balance sheet, income statement, statement of cash flows).

Comprehend the preparation and components of an income statement through operating income.

Differentiate between cash basis and accrual basis of accounting.

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Definitions:

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on-demand or at a set time, with the payer named on the document.

Endorsements

Refers to the act of signing one's name on the back of a check, bill of exchange, or similar document to transfer its ownership or to approve or support something.

Drafts

Written orders for the payment of a specified amount of money, typically used in international trade.

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or to the order of a specified person.