Which of the Following Is an Example of an Accrued

question 148

Multiple Choice

Which of the following is an example of an accrued expense?

• A) Salary owed but not yet paid
• B) Fees received but not yet earned
• C) Supplies on hand
• D) A two-year premium paid on a fire insurance policy

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

White Knight

A corporation or individual that acquires a corporation on the verge of being taken over by forces deemed undesirable by the company's board or management.

Hostile Takeover

An acquisition attempt by a company or investor to acquire another company against the wishes of the target company's management and board of directors.

Joint Venture

Typically, an agreement between firms to create a separate, co-owned entity established to pursue a joint goal.