During April,the Grass Is Greener Company Buys and Pays for a Six-Month

question 54

Multiple Choice

During April,the Grass is Greener Company buys and pays for a six-month supply of fertilizer in order to receive a bulk discount.The company uses accrual basis accounting.The cost of fertilizer recorded:

• A) immediately as an expense.
• B) as a liability, which will later be reduced as the fertilizer used.
• C) partially as an expense and partially as a liability.
• D) as an asset, which will later be reduced as the fertilizer is used.

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Definitions:

Tibia

The larger, stronger, and anterior of the two bones in the lower leg, commonly referred to as the shin bone.

Fibula

The smaller of the two bones in the lower leg, running parallel to the tibia and playing an important role in stabilizing the ankle.

Talus

A bone in the ankle that sits above the calcaneus (heel bone) and below the tibia (shinbone), critical for foot movement and stability.

Cuneiform Bones

A group of three bones in the foot located between the navicular bone and the first, second, and third metatarsal bones.