The Recognition of an Expense May Be Accompanied by Which

question 146

Multiple Choice

The recognition of an expense may be accompanied by which of the following?

• A)An increase in liabilities
• B)A decrease in liabilities
• C)A decrease in revenue
• D)An increase in assets

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Definitions:

Book Value

The net asset value of a company, calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

Income Taxes

Taxes on an individual's or corporation's income imposed by the government.

Modified Accelerated Cost Recovery System (MACRS)

The system of accelerated depreciation allowed for federal tax computations.

5-Year Asset

An asset that is expected to provide economic value or service for a period of five years.