How many of the following events would require an expense to be recorded? Ordering office supplies
Hiring a receptionist
Paying employees' salaries for the current month
Receiving but not paying a current utility bill
Paying for insurance in advance
A)One.
B)Two.
C)Three.

Question

Quizplus · Accepted Answer

Two events would require an expense to be recorded: paying employees' salaries for the current month and paying for insurance in advance. Ordering office supplies does not necessarily result in an expense (it depends on when the supplies are paid for), hiring a receptionist may result in an expense but could also be considered an investment in human resources, and receiving but not paying a current utility bill does not require an expense to be recorded until it is actually paid.

How Many of the Following Events Would Require an Expense