During September, the Bug-B-Gone Company buys and pays for a six-month supply of pesticides in order to receive a bulk discount. The company uses accrual basis accounting. The cost of the pesticides is recorded:
A. as a liability, which will later be reduced as the pesticides are used.
B. immediately as an expense.
C. as an asset, which will later be reduced as the pesticides are used.
D. partially as an expense and partially as a liability.
Answer: C
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The contracts of mentally ill persons not judged insane by the courts are
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