All of the Following Events (Transactions)would Be Identified from Standard

question 7

Multiple Choice

All of the following events (transactions) would be identified from standard source documents except for

• A)freight charges for merchandise purchased from suppliers.
• B)the amount to be paid to settle a lawsuit for discrimination in hiring employees.
• C)wages to be paid to hourly employees.
• D)commissions earned by sales employees.

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Definitions:

Incentivize

To provide incentives or motivations to encourage specific behaviors or actions.

Accrual

Accrual is an accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Liability

A liability is a company's financial debt or obligation that arises during the course of business operations, listed on the right-hand side of the balance sheet.

Asset

Resources with economic value owned by an individual, corporation, or country, expected to provide future benefits.