A Journal Entry to Recognize an Expense Must Include

question 16

Multiple Choice

A journal entry to recognize an expense must include:

• A)A credit to Accounts Payable.
• B)A credit to an expense account.
• C)A credit to Cash.
• D)A debit to an expense account.

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Definitions:

Production Process

Refers to the method or sequence of operations involved in the production of a good or service.

Prime Costs

The combined costs of direct materials and direct labor, which are directly attributable to the production of goods.

Prime Costs

A business's direct costs of materials and labor that are associated with the production of goods or services.

Idle Time

The period of time when resources, such as employees or machines, are available but not in use or producing, often resulting in inefficiency.