Which of the Following Types of Accounts Will Always Be

question 3

Multiple Choice

Which of the following types of accounts will always be debited to adjust for an unrecorded liability?

• A) Liabilities
• B) Revenues
• C) Receivables
• D) Expenses

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Definitions:

Distribution Inventory

Stocks of goods and materials held at various points in a supply chain, intended for downstream distribution.

Physical Inventory

The process of counting and verifying all physical goods and materials in stock by a business.

Shipping Costs

The expenses involved in transporting goods from one location to another, including freight charges, packaging, and handling fees.

Diseconomies of Scale

An economic concept where an increase in production leads to a rise in average costs per unit due to inefficiencies.