Which of the following items is an explicit transaction? Recognizing expense as equipment is used Recognizing...

Which of the following items is an explicit transaction?

Recognizing expense as equipment is used

Recognizing the revenue for inventory sold

Recognizing expense for prepaid insurance consumption

Accruing for audit fees at the end of the year

Solutions

Expert Solution

Explicit transactions are transactions that involve movement of resources from one party to another. An explicit transaction involves an invoice. In the given case only Recognizing the revenue for inventory sold involves movement of resources.

So, the answer is Recognizing the revenue for inventory sold

ekkarill92 answered 2 years ago

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