Deferred Expenses Have

question 69

Multiple Choice

Deferred expenses have

• A) not yet been recorded as expenses or paid
• B) been recorded as expenses and paid
• C) been incurred and paid
• D) not yet been recorded as expenses

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Definitions:

Costs of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.

Inventory

A company's full collection of materials and goods, kept for the goal of being sold or used in production.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for, represented as an asset on the company's balance sheet.

Return on Equity

A financial ratio indicating the profitability of a company relative to shareholders' equity, showing how much profit is generated with the money shareholders have invested.