Is an Example of an Implicit Transaction

question 135

Multiple Choice

is an example of an implicit transaction.

• A) Returning defective inventory
• B) Paying wages which have been accrued
• C) Accruing of interest expense
• D) Paying cash for three months' rent in advance

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to record unpaid expenses or revenues that have accrued, ensuring the accounts reflect the true financial position.

Purchased

Acquired goods or services in exchange for money or other compensation, indicating a transaction where ownership changes hands.

Payroll

Payroll is the total sum of all compensation a business must pay to its employees for a set period or on a given date, including salaries, wages, bonuses, deductions, and withholdings.

Adjusting Entry

A journal entry made in accounting to update the balances of accounts at the end of an accounting period.