The Primary Difference Between Deferred and Accrued Expenses Is That

question 94

Multiple Choice

The primary difference between deferred and accrued expenses is that accrued expenses:

• A)have been paid but deferred expenses haven't.
• B)have not been paid but deferred expenses have.
• C)involve assets instead of liabilities.
• D)There is no difference between deferred and accrued expenses.

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Definitions:

Comparative Balance Sheet

A comparative balance sheet presents financial positions of a business at different periods side by side to help in analyzing trends over time.

Net Increase

The total amount by which a value or quantitative measure has grown compared to a previous measurement or period.

Dividends

Payments made by a corporation to its shareholders, usually in the form of cash or additional stock, from its earnings.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.