The Business Incurred an Expense and Planned to Pay for the Expense

question 23

Multiple Choice

The business incurred an expense and planned to pay for the expense later on credit. To record this:

• A) an expense is debited and a liability is credited.
• B) an expense is debited and an asset is credited.
• C) an asset is debited and asset is credited.
• D) None of the above answers are correct.

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Definitions:

Null Hypothesis

A hypothesis stating there is no significant difference or effect, used as a starting point for statistical testing.

Significance Level

A threshold for determining whether an observed effect is statistically significant, often set at 0.05.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, proposing a new effect or relationship.

Null Hypothesis

A standard assumption that posits no meaningful difference or impact exists, usually examined in contrast with a contrasting hypothesis during statistical evaluation.