Which of the Following Is an Example of an Accrual

question 42

Multiple Choice

Which of the following is an example of an accrual?

• A) Bookkeeping fees collected but not yet earned
• B) Six months' rent paid in advance
• C) Interest earned but not yet received
• D) Equipment purchased for use in the business

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Definitions:

Adjusting Entry

An accounting entry made into a company's general ledger at the end of an accounting period to record any unrecognized income or expenses for the period.

Physical Inventory

The process of counting the actual goods or materials a business holds in stock as a way to verify stock levels and value.

Estimated Returns Inventory

The projection of goods that are expected to be returned by customers within a specific period, considered in inventory and financial planning.

Cost of Goods Sold

The cost of goods sold represents the direct costs attributable to the production of the goods sold by a company.