Which of the following transactions will result in the recognition of an expense?
A)Interest accrued on a bank loan.
B)A cash withdrawal by the owner.
C)Payment on accounts payable.
D)All of these choices.

Question

Quizplus · Accepted Answer

Interest accrued on a bank loan is recognized as an expense because it represents the cost of borrowing money, which reduces the company's net income. Choices B and C involve cash movements that do not directly affect the income statement where expenses are recorded.

Which of the Following Transactions Will Result in the Recognition