Which of the Following Expense Accounts Would Not Normally Be

question 89

Multiple Choice

Which of the following expense accounts would not normally be tested by listing all debits and examining any significant items?

• A)Legal expense.
• B)Miscellaneous expense.
• C)Repairs and Maintenance.
• D)Payroll expense.

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Definitions:

Gain On Sale

The profit realized from the sale of assets when the selling price exceeds the book value of the asset sold.

Semiannual Interest

Interest that is computed and disbursed biannually, frequently associated with bonds and lending agreements.

Accrued Interest

Interest that has been incurred but not yet paid, accumulating on loans or bonds over time until payment is made.

Interest Receivable

The amount of interest that has been earned but not yet received in cash.