An Example of an Explicit Transaction Is ________

question 31

Multiple Choice

An example of an explicit transaction is ________.

• A) recording depreciation expense
• B) paying cash for three months' rent in advance
• C) accruing wages expense at the end of the month
• D) accruing interest expense at the end of the year

---

Definitions:

Hog Futures

Financial contracts that obligate the buyer to purchase, and the seller to sell, a specific quantity of hogs at a predetermined price at a future date.

Limit Risk

Strategies or mechanisms implemented to reduce the potential for financial loss in investments.

Sell

To sell is to exchange a product, service, or asset for money or to dispose of it into the market.

Spot Price

The current market price at which a particular asset, like a commodity, currency, or security, can be bought or sold for immediate delivery.