Expenses Do Not Have to Be Paid in Cash at the Time

question 115

Multiple Choice

Expenses do not have to be paid in cash at the time they are incurred. When payment is made on a later date, the liability accounts payable account will decrease and the asset

• A) cash will increase.
• B) cash will decrease.
• C) will not be affected.
• D) accounts receivable will increase.

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Definitions:

Ethical Decision-Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Stare Decisis

A legal principle that dictates that courts should follow the precedents set by previous decisions in similar cases to ensure consistency and predictability in the law.

Standing By

The act of remaining ready or available to act or offer help while waiting for further instruction or developments.

Legal Principle

A foundational concept or established rule of law that guides judicial decisions and legal reasoning.