An Expense That Has Been Incurred but Not Yet Paid

question 82

Multiple Choice

An expense that has been incurred but not yet paid is called a(n) :

• A)accrued revenue.
• B)prepaid expense.
• C)unearned revenue.
• D)accrued expense.

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Definitions:

Chattel Paper

A document or electronic record that evidences both a monetary obligation and a security interest in specific goods.

Right to Payment

A legal entitlement to receive money as a result of a contract or legal agreement.

Liquidation

The process of converting company assets into cash to pay off debts, often preceding the dissolution of the company.

Trustee

A person or firm that holds and administers property or assets for the benefit of a third party.