The General Term Employed to Indicate an Expense That Has

question 70

Multiple Choice

The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is a(n)

• A)contra asset.
• B)prepayment.
• C)asset.
• D)accrual.

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Definitions:

Present Value

Present Value (PV) is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Donation

A voluntary gift or contribution of money or goods to a charitable organization or cause.

Lump Sum Payment

A lump-sum payment made on a certain occasion, in contrast to sequential smaller payments.

Employment Contract

A formal agreement that specifies the terms of the relationship between an employer and an employee, including duties, duration, and compensation.