A Journal Entry Contains a Debit to a Liability Account

question 83

Multiple Choice

A journal entry contains a debit to a liability account and a credit to a revenue account. This is an example of an) :

• A)accrued revenue.
• B)accrued expense.
• C)deferred expense.
• D)unearned revenue.

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Definitions:

Cheque Signing Authority

The power granted to an individual or individuals within an organization to sign checks on behalf of the company.

Internal Auditors

Professionals who conduct audits within an organization to review its operations, processes, and financial practices for efficiency, effectiveness, and compliance.

Internal Controls

Internal controls are processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Independent Accounting Firms

External organizations specializing in auditing, tax, and advisory services to ensure financial statements' accuracy and compliance with regulatory standards.