An Accrual May Involve an Adjusting Entry Between an Expense

question 142

True/False

An accrual may involve an adjusting entry between an expense and a liability.

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Definitions:

Good

An item or service that fulfills a consumer's want or need, which can be tangible, like a car, or intangible, like a service provided by a dentist.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefits received by all participants.

Good

A material item or service that fulfills wants or needs, often exchanged in economic transactions.

Equilibrium Price

The market price at which the quantity of a good or service demanded equals the quantity supplied.