What Is the Liability Called That Arises from an Expense

question 49

Multiple Choice

What is the liability called that arises from an expense that the business has incurred but has not yet paid?

• A) It is called a deferred expense.
• B) It is known as an unearned expense.
• C) It is referred to as an accrued expense.
• D) It is called a prepaid expense.

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Definitions:

Demonstration

A visual or practical presentation showing how a product or service works or its benefits.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Spontaneity

Acting on impulse rather than planning in advance, characterized by sudden and unplanned actions.

Professional Salespeople

Individuals who specialize in selling products or services, often using expert knowledge and skills to meet their customers' needs and achieve sales targets.