is an example of an explicit transaction.
A) Signing a contract to perform services in two months, at which time payment will be received
B) Paying cash for three months' rent in advance
C) Recognizing depreciation expense
D) Accruing earned but unpaid wages at the end of the month

Question

Quizplus · Accepted Answer

Paying cash for three months' rent in advance is an explicit transaction because it involves a clear exchange of cash for a service (rent) that is documented and recorded at the time of the transaction.

Is an Example of an Explicit Transaction