An Adjusting Entry That Debits Accounts Receivable Is an Example

question 195

Multiple Choice

An adjusting entry that debits Accounts Receivable is an example of a(n) ________.

• A) deferred expense
• B) accrued revenue
• C) accrued expense
• D) deferred revenue

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Definitions:

Predictive Value

The ability of financial information to help users make accurate predictions about future outcomes.

Future Events

Incidents or occurrences that have not yet happened but are anticipated or expected to occur in the course of a business's operation.

Constraint In Accounting

In accounting, constraints involve the limitations or boundaries that must be considered when preparing financial statements, such as materiality, cost-benefit considerations, and timeliness.

Measurement Principle

A fundamental accounting principle that dictates how transactions should be recorded based on their actual cost in financial statements.