Which of the Following Properly Describes a Deferral

question 68

Multiple Choice

Which of the following properly describes a deferral?

• A) Cash is received after revenue is earned.
• B) Cash is received before revenue is earned.
• C) Cash is paid after expense is incurred.
• D) Cash is paid in the same time period that an expense is incurred.

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Definitions:

Measures Of Performance

These are indicators or metrics used to evaluate the effectiveness, success, or efficiency of an operation, process, or individual.

Improvement

The process of making something better or more effective through modifications or enhancements.

Energy Usage

Concerns the amount of energy consumed in processes or activities, which businesses often aim to minimize to reduce costs and environmental impact.

Profit Generator

A business activity, product, or service that consistently produces a significant portion of the company's earnings.