If a Resource Has Been Consumed but a Bill Has

question 82

Multiple Choice

If a resource has been consumed but a bill has not been received at the end of the accounting period then

• A) an expense should be recorded when the bill is received.
• B) an expense should be recorded when the cash is paid out.
• C) an adjusting entry should be made recognizing the expense.
• D) it is optional whether to record the expense before the bill is received.

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Definitions:

Bottom-up Change

A change management approach where initiatives and ideas originate from lower levels of the organizational hierarchy, engaging employees and encouraging innovation and collaboration.

Radical Change

Significant, fundamental alterations to the existing state of an organization, industry, or market.

Transformational Change

Significant, radical change that fundamentally alters the culture, operations, or structure of an organization, leading to dramatic improvements.

Top-down Change

An organizational change initiative that is initiated and guided by the senior management, often without much input from lower-level employees.