A Liability That Arises from an Expense That the Business

question 137

Multiple Choice

A liability that arises from an expense that the business has incurred but has not yet paid is called a(n) :

• A)deferred asset.
• B)accrued asset.
• C)accrued expense.
• D)deferred expense.

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Definitions:

Work in Process Inventory

The total cost of unfinished goods currently in production, including material, labor, and overhead.

Process Costing System

An accounting method used in industries where production is continuous, calculating the cost of a product at various stages of the manufacturing process.

Homogeneous Product

A product that is uniform in quality and interchangeable with products of the same type from different producers.

Continuous Basis

An approach or process that operates non-stop or without interruption, often used in manufacturing or service delivery to maintain efficiency.