What Is the Liability Called That Arises from an Expense

question 125

Multiple Choice

What is the liability called that arises from an expense that the business has incurred but has not yet paid?

• A) It is known as an unearned expense.
• B) It is called a deferred expense.
• C) It is called a prepaid expense.
• D) It is referred to as an accrued expense.

---

Definitions:

Personality

A unique set of emotional, thought, and behavioral patterns that define an individual's typical responses to situations.

Pleasure Principle

A theory in psychoanalytic psychology proposing that people seek pleasure and avoid pain to satisfy biological and psychological needs.

Reality Principle

A psychoanalytic concept where the ego seeks to satisfy the id’s desires in realistic and socially appropriate ways.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.