Which of the Following Transactions Does Not Create a Deferral

question 94

Multiple Choice

Which of the following transactions does not create a deferral?

• A)Paying cash to purchase a three-month insurance policy.
• B)Receiving cash from a customer for services to be provided in the future.
• C)Paying cash to employees for wages they have earned.
• D)Paying cash to purchase a two-month supply of office supplies.

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Definitions:

Standard

Refers to an established norm or requirement in various contexts, such as quality, behavior, or operations.

Standard Costs

Predetermined costs for products, services, or activities, used as benchmarks for measuring performance.

Management Planning

The process of setting objectives and outlining a strategy to achieve those objectives within an organization.

Standard Costs

The predetermined costs associated with manufacturing a product or providing a service, used as benchmarks for measuring performance.