A Journal Entry Contains a Debit to a Liability Account

question 127

Multiple Choice

A journal entry contains a debit to a liability account and a credit to a revenue account.This is an example of a(n) :

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

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Definitions:

Refundable

Describes money that can be returned to the payer, often seen in tax credits or deposits that can be reclaimed under specific conditions.

Financial Statements

Documents outlining the financial activities and condition of a business, organization, or individual, typically including the balance sheet, income statement, and cash flow statement.

Asset Revaluation

The process of adjusting the book value of a company's assets to reflect their current fair market values.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.