Match the Type of Account (A Through E) with the Business

question 162

Multiple Choice

Match the type of account (a through e) with the business transactions that follow.
-Electric bill to be paid next month.

• A)Prepaid expense
• B)Accrued expense
• C)Unearned revenue
• D)Accrued revenue
• E)None of these choices

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, intended to standardize and simplify the law across state lines.

Authorized Agent

An individual or entity that has been given the legal authority to act on behalf of another person or entity in business transactions or other matters.

Warranties On Presentment

Guarantees made concerning the validity, authenticity, and condition of a negotiable instrument when it is presented for payment or acceptance.

Payor

A payor, in financial transactions, is the party that makes a payment to another party, the payee, often in fulfillment of an obligation such as a bill, loan, or settlement.