Something That Is Paid for and Will Be Used Within

question 39

Multiple Choice

Something that is paid for and will be used within one year is a(n)

• A)Expense
• B)Prepaid Expense
• C)Bill
• D)All of the above

---

Definitions:

Financial Statements

Consolidated reports that summarize the financial performance, position, and cash flows of a business over a specified period.

Adjusting Entries

Journal entries made in accounting to adjust income and expense accounts so they reflect the true financial position of a business.

Expenses

Costs incurred in the process of generating revenues, representing the consumption of resources such as raw materials, labor, and overhead.

Accrual Basis

An accounting method that recognizes revenue when earned and expenses when incurred, regardless of cash flow.