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:

Depreciation

The process by which tangible assets lose value over time due to use, wear and tear, or obsolescence.

Internal Audit Committee

A committee within an organization tasked with overseeing the internal audit functions, including compliance with laws, regulations, and standards of conduct.

Separate Budgets

The practice of creating distinct financial plans for different departments, projects, or activities within an organization to ensure proper allocation and management of resources.

Types Of Endowments

Different classifications of financial assets donated to institutions or organizations that are intended to be invested to generate earnings to support the donor’s specified purpose.