Which of the Following Describes an Accrued Expense

question 179

Multiple Choice

Which of the following describes an accrued expense?

• A)Incurred but not yet paid or recorded.
• B)Paid and recorded in an asset account after they are used or consumed.
• C)Paid and recorded in an asset account before they are used or consumed.
• D)Incurred and already paid or recorded.

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Definitions:

Value-Added

The enhancement a company gives its product or service before offering the product to customers, which can differentiate a company in the market, increase product value, and command a higher price.

Design Engineering

The branch of engineering focused on the design, development, and testing of products, systems, or structures, ensuring they meet specified requirements.

External Failure Cost

Costs incurred when a product or service fails to meet quality standards after it is delivered to the customer, including returns, repairs, and warranty claims.

Non-Value-Added

Activities or processes that do not add any significant value to the final product or service from the customer's perspective.