Asked by Zixin Zhang on Jul 16, 2024
Verified
The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is
A) depreciation
B) deferral
C) accrual
D) inventory
Recognition
In accounting, recognition refers to the formal recording of an item in the financial statements, acknowledging its existence and the fact that it meets the criteria for financial reporting.
Revenue
Income that a business receives from its normal business activities, usually from the sale of goods and services to customers.
Deferral
A deferral occurs when cash related to a future revenue or expense has been initially recorded as a liability or an asset.
- Familiarize oneself with the accrual and deferral mechanisms in accounting.
Verified Answer
Learning Objectives
- Familiarize oneself with the accrual and deferral mechanisms in accounting.
Related questions
The Unexpired Insurance at the End of the Fiscal Period ...
If There Is a Balance in the Unearned Subscriptions Account ...
Prepaid Expenses Are Eventually Expected to Become ...
Prepaid Advertising, Representing Payment for the Next Quarter, Would Be ...
Which of the Following Accounts Would Likely Be Included in ...