If, During an Accounting Period, an Expense Item Has Been

question 16

Multiple Choice

If, during an accounting period, an expense item 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 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:

Corporate Profits

The earnings generated by companies after covering their operational costs, taxes, and expenditures.

Proprietors' Income

The income earned by owners of unincorporated businesses, reflecting their production and sales efforts.

Rent

A periodic payment made by a tenant to a landlord in exchange for the use of land, a building, or another property.

Landlords

Individuals or entities that own real estate properties and rent them out to tenants, earning rental income in return.