Which of the Following Statements Is Correct

question 16

Multiple Choice

Which of the following statements is correct?

• A) When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.
• B) Promises of future payment are called accounts receivable.
• C) Increases and decreases in cash are always recorded in the owner's capital account.
• D) An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.
• E) Accrued liabilities include accounts receivable.

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Definitions:

Correct Grip

The proper way of holding an instrument, such as a pencil or sports equipment, to maximize efficiency and prevent injury.

Laces Shoes

Footwear that is secured to the foot with laces, allowing for adjustment of fit.

Symbolic

Pertaining to the use of symbols or the capacity to represent objects, actions, or ideas through symbols instead of literal representation.

Inner Emotions

The feelings that are experienced privately and internally, often not visible or known to others.