The Business Incurred an Expense and Paid It Immediately

question 101

Multiple Choice

The business incurred an expense and paid it immediately.To record this:

• A)an expense is debited and a liability is credited.
• B)an expense is debited and an asset is credited.
• C)an asset is debited and asset is credited.
• D)None of these is correct.

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Definitions:

Investments

Assets or items acquired with the goal of generating income or appreciating in value.

Markets

Platforms or venues where buyers and sellers meet to exchange goods, services, or financial instruments, determining prices through supply and demand.

Risk-Adjusted

A method or measurement that normalizes the performance of an investment by taking into account the amount of risk involved in producing its returns.

Mutual Fund Performance Measures

Metrics used to evaluate and compare the performance of mutual funds, including measures of risk, return, and the adjustment of performance for risk.