How Many of the Following Events Would Require an Expense

question 52

Multiple Choice

How many of the following events would require an expense to be recorded? Ordering office supplies
Hiring a receptionist
Paying employees' salaries for the current month
Receiving but not paying a current utility bill
Paying for insurance in advance

• A)One.
• B)Two.
• C)Three.

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Definitions:

Real Accounts

Accounts that are not closed at the end of the accounting year and include all balance sheet accounts that show the real and permanent financial position of a business.

Permanent Accounts

Accounts that carry their ending balances over to the next fiscal year, including asset, liability, and equity accounts, foundational for understanding a company's financial health.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, listing assets, liabilities, and equity.

Final Entries

The journal entries recorded at the end of an accounting period to prepare accounts for the next period or for the preparation of financial statements.