An Accrued Expense Occurs When

question 19

Multiple Choice

An accrued expense occurs when:

• A)Cash payment (or an obligation to pay cash)occurs before the expense recognition.
• B)An expense is recorded at the same time as the cash payment.
• C)Cash payment occurs after the expense is recognized and a liability is recorded.

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Definitions:

Express Contract

A contract in which the terms are specifically stated by the parties, either orally or in writing.

Executed Contract

A contract that has been fully performed and completed by all parties involved.

Implied-in-law Contract

A type of contract formed by the courts where no explicit agreement exists between the parties, but an obligation is imposed to prevent unjust enrichment.

Binding Contract

An agreement between two or more parties that is legally enforceable in a court of law.