Which of the Following Transactions Constitutes an Accrual Adjustment Involving

question 71

Multiple Choice

Which of the following transactions constitutes an accrual adjustment involving a revenue account?

• A) Revenue earned, but not yet collected, on investments
• B) Revenue earned during the period from an amount that was previously recorded as a liability when the cash was received
• C) Wages incurred, but not yet paid to employees, at the end of the accounting period
• D) Interest owed, but not yet paid, on a note payable

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Definitions:

Raw Materials

Basic materials and substances used in the initial production or manufacturing of goods.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Long-Term

Refers to assets, liabilities, or investments that are expected to be held or have an effect for a period exceeding one year.

Current

Pertaining to assets or liabilities expected to be consumed, sold, or settled within one fiscal year or the operating cycle, whichever is longer.