Incurred but Unpaid Expenses That Are Recorded During the Adjusting

question 11

Multiple Choice

Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are called

• A)Operating expenses.
• B)Unearned expenses.
• C)Accounts payable.
• D)Prepaid expenses.
• E)Accrued expenses.

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Definitions:

Accountant

A professional who is responsible for keeping and interpreting financial records, ensuring accuracy and compliance with laws.

Economist

A professional who studies the production, distribution, and consumption of goods and services, focusing on economic theories and practices.

Interest

The charge for obtaining funds, often shown as a percentage of the loan amount.

Explicit Cost

Direct, out-of-pocket expenses incurred in the operation of a business, such as wages or rental payments.