If a Resource Has Been Consumed but an Invoice Has

question 50

Multiple Choice

If a resource has been consumed but an invoice has not been received at the end of the accounting period, then

• A) an expense should be recorded when the invoice is received.
• B) an expense should be recorded when the cash is paid out.
• C) an adjusting entry should be made recognizing the expense.
• D) it is optional whether to record the expense before the invoice is received.

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Definitions:

Buy His Interest

To purchase someone's stake, shares, or assets in a company or property, effectively transferring ownership or control to the buyer.

Liability to Third Parties

A legal obligation to compensate individuals not directly involved in a contract or agreement for any injuries or damages caused.

Right to Dissociate

The legal ability of a partner to leave a partnership under laws governing business partnerships, potentially triggering buyout provisions or dissolution of the partnership.

Dissociate

To separate or remove oneself from an association, relationship, or partnership.