During an Accounting Period, If an Expense Has Been Incurred

question 55

Multiple Choice

During an accounting period, if an expense 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.

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Definitions:

Financial Lease

A type of lease in which the lessee has use of the asset for most of its useful life, and the lease payments are designed to cover the lessor's purchase costs and provide a profit.

Lessor

The group that provides a property or asset for lease to another group, identified as the lessee.

Nonrecourse Basis

Nonrecourse Basis refers to a type of financing or lending where the borrower is not personally liable beyond the collateral for the loan.

Lessor

The party in a lease agreement who owns the leased asset and grants the lessee the right to use the asset in return for periodic payments.