Which Statement About Concepts Is FALSE? Concepts

question 152

Multiple Choice

Which statement about concepts is FALSE? Concepts:

• A) facilitate thinking and communication.
• B) pertain to categories of things but not actions.
• C) are the most basic building blocks of thinking.
• D) allow us to apply our prior knowledge to something new.

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Definitions:

Prepaid Expenses

Payments made for goods or services to be received in the future, recognized as assets on the balance sheet until they are incurred.

Journal Entry

A record of financial transactions in the accounting books of a business, indicating the accounts affected and the amounts.

Credits

Refers to the accounting entries that increase liabilities or decrease assets, representing the opposite effect of debits in double-entry bookkeeping.

Liability Accounts

Accounts on a balance sheet that represent obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.