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:

Semiperipheral Capitalist Country

A term from world-systems theory describing countries that are intermediate, neither fully core nor fully peripheral, often involved in manufacturing and export but lacking the dominance of core nations.

Guatemala

A country in Central America characterized by its rich Mayan heritage, volcanic landscapes, and diverse ecosystems.

Modernization Theory

A theory suggesting that economic development and cultural change lead to shifts from traditional to modern societies with corresponding changes in social structures.

Functionalism

stresses that human behaviour is governed by relatively stable social structures. It underlines how social structures maintain or undermine social stability, emphasizes that social structures are based mainly on shared values or preferences, and suggests that re-establishing equilibrium can best solve most social problems.