Which One of the Following Is Not a Recognized Method

question 196

Multiple Choice

Which one of the following is not a recognized method of recognizing assets as expenses in a particular accounting period?

• A)Customers' account balances in accounts receivable are assigned to expense in the period in which each customer pays.
• B)Prepaid insurance is assigned to expense as the insurance expires.
• C)A building is depreciated and its cost is assigned to the current and future accounting periods in which the building is expected to be used.
• D)Merchandise inventory is assigned to cost of goods sold in the period the goods are sold.

---

Definitions:

Groundwater

Water stored underground in soil and crevasses, or an aquifer

Evaporation

The process by which a liquid turns into vapor, typically under the effect of heat.

Nitrogenase

The enzyme responsible for nitrogen fixation under anaerobic conditions.

Nitrogen Fixation

The chemical process by which atmospheric nitrogen is assimilated into organic compounds, especially by certain microorganisms as part of the nitrogen cycle.