If a Resource Has Been Consumed but a Bill Has

question 36

Multiple Choice

If a resource has been consumed but a bill has not been received at the end of the accounting period, then

• A)an expense should be recorded when the bill is received.
• B)an expense should be recorded when the cash is paid out.
• C)an adjusting entry should be made recognizing the expense.
• D)it is optional whether to record the expense before the bill is received.

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Definitions:

Textile Mills

Industrial sites where natural or synthetic fibers are processed into fabric.

Machine Shops

Workshops equipped with mechanical tools and machines for cutting, shaping, and assembling metal parts into finished products or components.

Coal Mines

Deep excavation sites or structures where workers extract coal from the Earth, often featuring complex tunnel systems.

Gestation

The process of carrying or being carried in the womb between conception and birth.