Home › Enrolled Agent (SEE) › Accounting › Adjusting Entries › Prepaid expenses and unearned revenues whose rec…
Prepaid expenses and unearned revenues whose recognition is delayed are known as:
ADepartures
BDeferrals
CDeductions
DDeliveries
Answer & Solution
Correct answer: B. Deferrals
1. Cash has already moved in these cases.
2. The recognition waits until the item is used or earned.
3. Such items are deferrals.
_Source: OpenStax Principles of Financial Accounting, Chapter 4, The Adjustment Process._
Related questions
A trial balance is prepared before adjustments, after adjustments and after:A contra asset account such as Accumulated Depreciation increases with a:Cash received in January for printing to be done later was recorded by the company as a:An accountant should remember that the book value of an asset is not necessarily its:Book value of equipment is found by taking original cost and subtracting accumulated:Accumulated Depreciation sits against an asset account, so its normal balance is on the:Spreading the cost of equipment systematically across the periods it serves is called:Salaries earned by staff but unpaid at period end are an example of accrued: