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:

Minimum Payments

The smallest amount of a debt that must be paid each period, often used in the context of credit card debt or loans to avoid penalties.

Endowment Effect

A cognitive bias where people ascribe more value to things merely because they own them.

Gains

The increase in economic benefit, which can be measured in terms of profit, utility, or welfare, resulting from an action or transaction.

Losses

The financial deficit arising when the cost of producing and operating exceeds the revenue generated.