Identify the Statement Below That Is Correct

question 212

Multiple Choice

Identify the statement below that is correct.

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

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Definitions:

Shortage

An instance where the need for a good or service surpasses its availability in the marketplace.

Subsidy

Financial assistance provided by government to support businesses, organizations, or individuals, often aimed at encouraging certain economic activities or reducing burdens.

Selling Price

The amount of money that a seller charges for a product or service.

Market Impact

refers to the effect that the buying or selling of a large quantity of a financial instrument has on the price of that instrument.