Which of the Following Transactions Involves an Accrued Asset

question 140

Multiple Choice

Which of the following transactions involves an accrued asset?

• A)Wages earned by employees but not yet paid
• B)Rent collected in advance from a tenant
• C)Rent owed by a tenant but not yet collected
• D)One year's premium on life insurance policy paid in advance

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Definitions:

Fringe Benefit

Additional compensation provided to employees beyond their normal wages, such as health insurance, company cars, or retirement plans.

Employer-Paid Premiums

Payments made by an employer towards their employees' health insurance or other benefits, usually part of an employee's compensation package.

Tax Liability

The total amount of taxes owed by an individual, corporation, or other entity to a taxing authority, such as the IRS.

Qualified Dividend

Dividend payments to shareholders from profits of a corporation that meet specific criteria to qualify for reduced tax rates.