Explain the Difference Between a Closed-Fact and Open-Fact Situation

question 106

Essay

Explain the difference between a closed-fact and open-fact situation.

---

Definitions:

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Expenses

The cost of assets consumed or services used in the process of earning revenue.

Depreciation Expense

Depreciation Expense is an accounting method of allocating the cost of a tangible asset over its useful life.