Identify Each of the Following Items as Either an Accrual

question 140

Short Answer

Identify each of the following items as either an accrual or deferral.
a.Accrual
b.Deferral
_____ 1.Account receivable
_____ 2.Account payable
_____ 3.Prepaid insurance
_____ 4.Interest receivable
_____ 5.Prepaid advertising

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Definitions:

Depreciation Charge

An accounting expense recorded to allocate the cost of a tangible asset over its useful life.

Book Value

The value of an asset according to its balance sheet account balance, often different from its market value.

Controllable Margin

A financial metric that reflects the amount of profit a business can potentially control or influence directly, typically by managing costs or increasing sales.