Which of the Following Describes an Accrued Liability

question 23

Multiple Choice

Which of the following describes an accrued liability?

• A)It is an expense that has been both incurred and paid.
• B)It is an expense that has been incurred but not yet paid.
• C)It is an expense that has been prepaid but not yet consumed.
• D)It is a liability where the cash flow has taken place but the revenue has yet to be earned.

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Definitions:

Bona Fide Purchaser

A person who buys property in good faith, without notice of any prior claims or disputes over the property, and is therefore protected under law.

Attachment

A legal procedure by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor or sold for the benefit of the creditor.

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's personal property.

Charter Business

A company that operates under a charter, offering specified services or engaging in a particular type of business, often subject to special regulations or privileges.