Which of the Following Is an Example of a Deferral

question 173

Multiple Choice

Which of the following is an example of a deferral?

• A) Interest expense incurred but not yet paid
• B) A commission collected in advance
• C) Estimated income taxes for the year
• D) Medical fees earned but not yet collected

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Definitions:

Alveolar Ducts

Narrow passageways in the lungs that lead from the bronchioles to the alveolar sacs, where gas exchange occurs.

Alveolus

A tiny air sac in the lungs where the exchange of oxygen and carbon dioxide occurs during the process of breathing.

Terminal Bronchiole

The smallest airways in the lungs, preceding the alveolar ducts, that do not contain any cartilage or glands in their wall.

Respiratory Bronchiole

Smallest bronchiole (0.5 mm in diameter) that connects the terminal bronchiole to the alveolar duct.