The Business Incurred an Expense and Paid It Immediately

question 24

Multiple Choice

The business incurred an expense and paid it immediately. To record this,

• A) an expense is debited and a liability is credited.
• B) an expense is debited and an asset is credited.
• C) an expense is debited and Capital is credited.
• D) None of these are correct.

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Definitions:

DSM-5

The Fifth Edition of the Diagnostic and Statistical Manual of Mental Disorders serves as a critical handbook for healthcare practitioners, offering official guidance for the diagnosis of mental health conditions.

Binge/Purge Type

A subtype of disorders characterized by episodes of excessive eating followed by compensatory behaviors like vomiting or excessive exercise, to prevent weight gain.

Anorexia Nervosa

An eating disorder defined by an abnormally low body weight, intense fear of gaining weight, and a distorted perception of body weight or shape.

Caucasian

A term historically used to refer to people of European origin or descent; now considered broad and imprecise for describing ethnicity.