Which of the Following Transactions Does Not Result in an Increase

question 149

Multiple Choice

Which of the following transactions does not result in an increase in expenses?

• A)Payment of accounts payable.
• B)Usage of utlities.
• C)Allocation of the cost of a building.
• D)Expiration of prepaid insurance.

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Definitions:

Effective Annual Cost

The total cost of a loan or investment, expressed as an annual rate, including interest and any fees or additional costs.

Credit Terms

Refers to the conditions, including payment timelines and interest rates, under which credit is extended to borrowers.

Receivables Period

The average time that it takes for a business to receive payments owed by its customers for goods or services rendered.

Cash Sales Policy

A policy where transactions are only completed with immediate payment of cash, rather than credit or other delayed payment methods.