The Term Used to Describe an Expense That Has Not

question 27

Multiple Choice

The term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is

• A) prepaid
• B) deferred
• C) accrued
• D) matched

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Definitions:

Unauthorized Contract

An agreement made by someone who does not have the legal right or power to do so on behalf of another person or entity.

Agent Lacks Authority

A situation where an agent acts outside of their given powers, potentially making their actions unbinding on the principal.

Notify the Third Party

The act of informing someone not directly involved in a transaction or agreement about relevant information or developments.

Disclosed Principal

A principal whose identity is known by the third party at the time a contract is entered into with the agent acting on behalf of the principal.