An Expense That Has Been Incurred but Not Yet Paid

question 182

Multiple Choice

An expense that has been incurred but not yet paid is called a(n) ________.

• A) accrued revenue
• B) deferred expense
• C) deferred revenue
• D) accrued expense

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Definitions:

Average Sale Period

The average time it takes for a company to sell its inventory, calculated over a specific time frame.

Total Asset Turnover

A financial ratio that measures a company's ability to use its assets to generate sales revenue.

Total Assets

Total assets represent the sum of all owned resources with economic value that a company or individual possesses, as recorded on the balance sheet.

Sales

The total revenue a company generates from selling its goods or services.