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Elizabeth Scott
on Nov 18, 2024

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Goods purchased on account for future use in the business, such as supplies, are called

A) prepaid liabilities
B) revenues
C) prepaid expenses
D) liabilities

Prepaid Expenses

Payments made for goods or services to be received in the future, considered an asset because they provide future economic benefits to the company.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities, either for-profit or nonprofit.

Supplies

Supplies refer to items used in the regular operation of a business that are not directly part of finished goods.

  • Acquire knowledge about the concepts of revenue, expenses, and equity in the context of accounting.
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Nardia CampbellNov 24, 2024
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