A Journal Entry to Recognize an Expense Could Include Each

question 78

Multiple Choice

A journal entry to recognize an expense could include each of the following,except:

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

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Definitions:

Noncash Assets

Assets that are not in the form of cash or easily convertible into cash, such as real estate, equipment, and patents.

Capital Deficiency

A situation where a company's liabilities exceed its assets, indicating financial distress.

Income Ratio

A financial metric that compares different types of income to a common base, such as net income to sales, to evaluate financial performance.

Cash Distribution

The process of distributing or paying out cash from a corporation to its shareholders, often in the form of dividends.