Which of the Following Would Cause a Liability to Be

question 55

Multiple Choice

Which of the following would cause a liability to be credited and an expense to be debited?

• A) Recording the adjustment for the expiration of rent
• B) Recording the depreciation of equipment
• C) Recording the accrual of salaries incurred
• D) Purchasing equipment

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Definitions:

Business

The practice of making one's living by engaging in commerce, trade, and services.

Operational Decisions

Decisions that relate to the daily operations of an organization, aimed at optimizing efficiency, productivity, and quality in the creation of products or services.

Exchange Transactions

Dealings or trades between parties where goods, services, or money are passed in return for something else of value.

Industry

The collection of businesses and activities that supply a particular service or commodity.