An Accrual Is Best Defined As

question 134

Multiple Choice

An accrual is best defined as:

• A) a completed transaction that results in a liability.
• B) an accumulation of a liability in regard to an incomplete transaction.
• C) a completed transaction that results in an asset.
• D) an expense paid in advance.

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Definitions:

Finished Goods Inventory

An end item ready to be sold, but still an asset on the company’s books.

Raw Materials

Basic materials that are processed or refined to create a final product in manufacturing.

Monthly Sales

The total revenue or number of units sold by a business during a calendar month.

Supply Chain Costs

Expenses incurred in the production and distribution process of goods, from raw materials to final delivery to the consumer.