An example of an implicit transaction is
A)a cash sale.
B)a credit purchase of inventory.
C)the receipt of cash in advance of providing services.
D)the expiration of prepaid rent.
E)a credit sale.

Question

Quizplus · Accepted Answer

The expiration of prepaid rent is an example of an implicit transaction because it involves the gradual reduction of a prepaid expense account over time, without any explicit exchange of goods, services, or money at the time of the transaction. This transaction only reflects the passage of time, and is not directly linked to any other financial event or agreement.

An Example of an Implicit Transaction Is