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Problem 1: Which of the following is an example of a deferral?
a. A commission collected in advance.
b. Interest earned on a bank account.
C. Interest expense incurred but not yet paid.
d. Medical fees earned but not yet collected.
Problem 2: The recording of an expense could result in a corresponding increase in
a. a liability.
b. an asset.
C. owner's equity.
d. revenue.
Problem 3: Recording of an expense could result in a corresponding increase in
a. Liability
b. an asset
c. owner's equity
d. revenue
materials costs of 500000 and conversion costs of 535500 were charged to a processing department in the month of
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