Which of the Following Entries Is an Example of Asset $\quad$

question 29

Short Answer

Which of the following entries is an example of asset consumption recognised over future time periods?
A. DR Warranty expense $\quad$ CR Warranty liability

B. DR Supplies expense $\quad$ CR Supplies inventory

C. DR Customer deposits $\quad$ CR Service revenue

D. DR Supplies inventory $\quad$ CR Supplies expense

---

Definitions:

Mortgage Debt

The amount of money a borrower owes to a lender, secured by real property through a mortgage agreement.

Law of Conveyancing

A body of law pertaining to the transfer of ownership of property rights from one person to another.

Marketable Title

A clear title to real estate that is free from any significant liens or encumbrances, making it readily sellable.

Warranty Deed

A legal document in real estate transactions that guarantees the seller holds clear title to the property and has the right to sell it.