Macro Corporation and Micro,Inc

question 14

Multiple Choice

Macro Corporation and Micro,Inc. ,enter into an agreement.To consti?tute a contract,the terms

• A)must all be express.
• B)must all be implied.
• C)may be express,implied,or a mix of both.
• D)may be express or implied,but not both.

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Definitions:

Prepaid Rents

Payments made in advance for rent, which are recorded as an asset and then expensed over the period the payment covers.

Rent Expense

The cost incurred for leasing property, equipment, or other assets for business operations, recognized as an expense in the income statement.

Liability Until Earned

Liability Until Earned refers to revenue received in advance of being earned and is recorded as a liability on a company's balance sheet until the service or product is delivered.

Recorded As Revenue

The process of recognizing the amount of money earned from providing goods or services in the financial records during a specific accounting period.