An Accrual Is ________

question 198

Multiple Choice

An accrual is ________.

• A)a transaction in which the action comes before the exchange of cash
• B)a transaction in which the exchange of dollars comes before the action takes place
• C)another term for a deferral
• D)recorded when cash is paid in advance of receiving the service

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Definitions:

Adjusted Balances

Pertains to financial statements or account balances that have been modified to reflect corrections, adjustments, or reconciliations.

Accounts

Represents records in accounting that track financial transactions of various types, such as assets, liabilities, equity, expenses, and revenue.

Accumulated Depreciation

The entire value of the depreciation expense assigned to a tangible asset since its initial use.

Balance Sheet

A financial record that itemizes a company's assets, liabilities, and the equity of its shareholders at a certain moment in time.