Which of the Following Transactions Results in an Increase in Expenses

question 129

Multiple Choice

Which of the following transactions results in an increase in expenses?

• A) Payment on accounts payable
• B) Usage of utilities
• C) Repayment of principal of bank loan
• D) Purchase of office equipment on credit

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Definitions:

Lead Times

The total time taken for a process from initiation to completion, often used in the context of supply chain and manufacturing.

Inventory Availability

The ability of a company to meet customer demand by having sufficient stock on hand, directly impacting customer satisfaction and sales.

Purchase Orders

Official documents issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Gross Requirement

The total quantity of a material or part needed to fulfill production, before considering any inventory on hand or scheduled receipts.