An Example of an Account That Could Be Included in an Accrual

question 74

Multiple Choice

An example of an account that could be included in an accrual adjustment for revenue is:

• A)Rent Receivable.
• B)Interest Payable.
• C)Deferred Revenue.
• D)Cash.

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Definitions:

Gratuitous Promise

A vow or commitment to do something for someone else without expecting anything in return.

Breach of Contract

The act of breaking any terms and conditions that were mutually agreed upon in a legally enforceable contract.

Consideration

An item of worth traded between entities within a contract, essential for the contract to be considered enforceable by law.

Common Law

A body of law derived from judicial decisions of courts and similar tribunals, as opposed to statutes or official legislation.