Which of the Following Is an Example of a Deferral

question 226

Multiple Choice

Which of the following is an example of a deferral?

• A) Debit Interest Expense,credit Interest Payable
• B) Debit Accounts Receivable,credit Legal Fees Earned
• C) Debit Property Taxes Expense,credit Property Taxes Payable
• D) Debit Depreciation Expense-Truck,credit Accumulated Depreciation-Truck

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Definitions:

Profit Maximizing

The process or objective of adjusting production and sale levels to achieve the highest possible profit.

Economic Profit

The surplus left after subtracting total costs from total revenue, taking into account both explicit and implicit costs.

Total Revenue

The overall amount of money generated by a business from its sales of goods or services, calculated by multiplying the selling price by the quantity sold.

Maximizes Profits

The strategy employed by firms to achieve the highest possible profit from their operations, often through increasing revenue, reducing costs, or both.