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:

Material Breach

a significant violation of a contractual agreement that permits the other party to the contract to demand remediation or terminate the agreement.

RMBCA

The Revised Model Business Corporation Act, which guides the incorporation and operation of corporations in many U.S. states.

Disinterested Directors

Board members who do not have a personal or financial interest in a corporate decision, ensuring unbiased governance.

Conflict of Interest

A situation where a person's private interests might influence or appear to influence their professional judgment or actions, potentially leading to ethical issues.