Examlex

Solved

Deferral Adjustments Are Needed When a Company Has Earned Revenue

question 84

True/False

Deferral adjustments are needed when a company has earned revenue or incurred an expense in the current period but has not yet recorded it because the related cash will not be received or paid until a later period.


Definitions:

Loan

A borrowed amount of money that is to be repaid along with interest.

Investment

The distribution of funds or other resources with the aim of earning revenue or profit.

Total Return

The overall financial gain or loss on an investment, considering both capital gains and income such as interest or dividends.

Dividend

A portion of a company's earnings that is paid to shareholders, usually on a regular basis.

Related Questions