Which of the Following Statements Is Correct

question 178

Multiple Choice

Which of the following statements is correct?

• A)When a future expense is paid in advance,the payment is normally recorded in a liability account called Prepaid Expense.
• B)Promises of future payment are called accounts payable.
• C)Increases and decreases in cash are always recorded in the retained earnings account.
• D)An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.
• E)Liabilities include accounts receivable.

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Definitions:

Economic Growth

Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time, often measured as the percentage increase in real gross domestic product (GDP).

Standard Of Living

Necessities, comforts, and luxuries one seeks to obtain or to maintain.

Expanded Job Opportunities

The increase in the variety and number of jobs available to the workforce, often due to economic growth, technological advancements, or industry expansion.

Market-Oriented Economy

An economic system where business decisions and the direction of production are guided by the fluctuations of market prices.