An Accrued Expense Is an Expense

question 45

Multiple Choice

An accrued expense is an expense

• A)incurred but neither paid nor recorded
• B)incurred, paid, and recorded
• C)paid and recorded but not incurred
• D)whose amount is subject to estimation

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Definitions:

Cost of Goods Sold

The direct expenses tied to the production of goods sold by a company, including material and labor costs.

Net Income

A company's profit amount after all deductions for expenses and taxes from revenue have taken place.

FIFO Cost Flow

An inventory valuation method (First In, First Out) where goods first purchased or produced are sold or used first.

Income Tax Expense

The amount of money a company is obligated to pay in income taxes for a given fiscal period.