Dexter Corp

question 91

Multiple Choice

Dexter Corp. received cash for a service that is to be performed in the next accounting period. How should this transaction be accounted for?

• A)As accrued revenue.
• B)As an expense.
• C)As a prepaid expense.
• D)As a liability.

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Definitions:

Exercises Power

The act of utilizing control or authority to influence others or outcomes in various contexts.

Staff Units

Specialized departments or personnel that provide support, advice, and expertise to line units within an organization, rather than being directly involved in day-to-day operations.

Specialized Expertise

Specific, advanced knowledge or skills in a particular field or area of study.

Horizontal Division

The organizational structure that involves dividing a company based on different types of jobs or tasks, leading to departments that are on the same level.