Which of the Following Transactions Does Not Involve an Accrual

question 99

Multiple Choice

Which of the following transactions does not involve an accrual?

• A)Recording interest earned that will be received in the next period.
• B)Recording operating expense incurred but not yet paid.
• C)Recording salary expense incurred but not yet paid.
• D)Recording the pre-payment of two years' worth of insurance.

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Definitions:

Conglomerate Merger

Merger that combines unrelated firms, usually with the goal of diversification, spurring sales growth, or spending a cash surplus in order to avoid a takeover attempt.

Horizontal Merger

A type of business consolidation that occurs between companies operating in the same industry, often to reduce competition or achieve economies of scale.

Vertical Merger

A merger between two companies that operate at different levels within the same industry's supply chain.

Innovative Products

Products that introduce new features, functions, or designs that differ significantly from previous products and may offer new benefits to the consumer.