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Exam Code: C-C4H320-02

Exam Name: SAP Certified Application Associate - SAP Commerce Cloud Business User

Version: V15.35

Q & A: 208 Questions and Answers

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NEW QUESTION: 1
The purpose of an entry that contains a debit to prepaid property taxes and a credit to property tax expense is to recognize a(n):
A. Accrued expense.
B. Prepaid expense.
C. Prepaid income.
D. Expired cost.
Answer: B
Explanation:
An entry debiting prepaid property taxes and crediting property tax expense is needed at the balance sheet date when prepayments are initially recorded in an expense account.
This adjusting entry defers expense recognition to the future period in which the property taxes apply.

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