Deferral Type Adjustments Occur When Cash for Expenses Is Paid

question 58

Multiple Choice

Deferral type adjustments occur when cash for expenses is paid in advance or cash from incomes is pre-collected. How many of the following will require a deferral type adjustment?
Rent paid for in advance
Buildings to be depreciated
Rent collected in advance from tenants
Interest is owed to the bank

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Isolationist Policy

A foreign policy stance wherein a country seeks to minimize its involvement in international affairs and focus primarily on its own development.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in response to the Great Depression.

Internationalism

A political principle which advocates for greater political or economic cooperation among nations and peoples across the globe.

Rationing

The controlled distribution of scarce resources, goods, or services, often implemented during shortages to ensure fair and equitable access.