Which Account Is Least Likely to Be Credited When an Expense

question 135

Multiple Choice

Which account is least likely to be credited when an expense is recorded?

• A)Cash
• B)Accounts Payable
• C)An account with the word "Prepaid" in its title
• D)Accounts Receivable

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Definitions:

Collection Time

The time duration that a business takes to recover the payments owed to it by its clients, often measured from the date of sale or service delivery.

Collection Float

The time interval between when a check is deposited in a bank and when the funds are made available.

Zero-Balance Account

A type of bank account that maintains a balance of zero by automatically transferring funds from a master account in exact amounts to cover charges or checks presented.

Master Account

A primary account in financial management that holds funds or securities and from which transactions can be made.