Which of the Following Would Cause the Recognition of a Liability

question 30

Multiple Choice

Which of the following would cause the recognition of a liability?

• A) Credit extended by suppliers.
• B) Receipt of cash in advance for services.
• C) Recognition of expense prior to the actual payment of cash.
• D) All of the above.

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Definitions:

Long Logistical Distance

Long logistical distance indicates the extended physical space or geographical span that logistics and supply chain processes must cover, potentially influencing transport time and costs.

Package Carrier

A company or service that specializes in the transportation and delivery of parcels and documents.

Package Carriers

Package carriers are companies that specialize in the shipment of packages and parcels across diverse geographical locations.

Online Businesses

Companies that operate on the internet, offering goods or services through websites or applications, often with a broader reach and lower operational costs compared to traditional businesses.