Entries That Record an Expense Before the Cash Is Paid

question 58

Multiple Choice

Entries that record an expense before the cash is paid are:

• A)prepaid expenses.
• B)accrued expenses.
• C)unearned revenues.
• D)accrued revenues.

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Definitions:

Selling And Administrative Expenses

Costs incurred by a company from selling its products or services and managing its daily operations.

Activity Level

An indicator of the volume or amount of production or operations undertaken by a business, affecting its costs and revenues.

Direct Materials

Raw materials that can be directly attributed to the production of a specific product.

Flexible Budget

An adjustable budget framework responsive to shifts in volume or levels of activity.