Which of the Following Transactions Results in the Recognition of an Expense

question 154

Multiple Choice

Which of the following transactions results in the recognition of an expense?

• A)Expiration of the usefulness of equipment during the accounting period.
• B)Payment on an account payable.
• C)Withdrawal of cash by the owner.
• D)Payment on the principal portion of a loan.

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Definitions:

Great Depression

A global economic downturn of severe magnitude, primarily occurring in the 1930s, starting in the United States.

Roosevelt Administration

The period of U.S. history during Franklin D. Roosevelt's presidency, known for significant economic reforms known as the New Deal.

Federal Government Agencies

Organizations established by the federal government to implement certain policies, regulate activities, and provide specific services.

Mortgages

Loans secured by real property used by individuals and businesses to purchase homes or other real estate without paying the entire purchase price upfront.