An Entry That Reflects the Using Up of a Portion

question 4

Multiple Choice

An entry that reflects the using up of a portion of a fixed asset's value would be a(n) ________ entry.

• A) prepaid expense
• B) accrued expense
• C) accrued revenue
• D) depreciation

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Definitions:

Accrued Liabilities

Liabilities recorded on the balance sheet that represent expenses that have been incurred but not yet paid.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered and invoiced but not yet paid for.

TIE Ratio

A financial performance indicator that shows a company's capacity to cover its interest expenses with its current earnings, highlighting its financial health and stability.

Target

In the business context, it generally refers to a specific objective or goal that a company or individual aims to achieve.