Which of the Following Is an Example of an Accrued

question 80

Multiple Choice

Which of the following is an example of an accrued expense?

• A) Office supplies purchased at the beginning of the year and debited to an expense account.
• B) Property taxes incurred during the year, to be paid in the first quarter of the subsequent year.
• C) Depreciation expense.
• D) Rent earned during the period, to be received at the end of the year.

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Definitions:

Financial Ratios

Financial Ratios are quantitative measures derived from a company's financial statements to assess its performance, efficiency, profitability, and financial health.

Dividend Payout Ratio

The portion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total net income.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often used for reinvestment in the business.

Planning Assumption

Planning assumption involves the underlying assumptions or estimations made during the planning phase of a project or strategy, which guide decision-making and expectations for the future.