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:

Total Asset Turnover

A financial ratio that measures a company’s efficiency in using its assets to generate revenue.

Net Sales

The revenue generated from goods or services sold by a business, minus returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

The mean value of all assets owned by a company over a specific period, used to evaluate financial health and operational efficiency.

Current Ratio

A financial metric used to assess a company's ability to pay off its short-term liabilities with its short-term assets.