The Relationship Between the Acquire Services and Disburse Cash Events

question 45

Multiple Choice

The relationship between the Acquire Services and Disburse Cash events is modeled as ____ to reflect the common situation in which the organization obtains the use of a specific service for a particular period of time and makes a payment each month for the services it acquired and used that month.

• A)1:1
• B)1:N
• C)M:N
• D)None of the above

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Definitions:

Interest Payable

A liability account on a company's balance sheet representing the amount of interest expense that has been incurred but not yet paid.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for a more accurate financial report.

Salaries Payable

An accounting liability representing the amounts owed to employees for work performed but not yet paid.

Adjusting Entry

Journal entries made at the end of an accounting period to update account balances to their correct amounts before the preparation of financial statements.