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    Core Concepts of Accounting
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    Exam 3: The Mechanics of Double-Entry Bookkeeping
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    A Company Records Interest That It Owes, but Has Not
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A Company Records Interest That It Owes, but Has Not

Question 24

Question 24

Multiple Choice

A company records interest that it owes, but has not yet paid, at the end of the fiscal year. This recognition of interest generates a(an)


A) accrued liability.
B) accrued asset.
C) deferred expense.
D) deferred liability.
E) deferred revenue.

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