Which of the Following Is an Example of an Accrual

question 55

Multiple Choice

Which of the following is an example of an accrual?

• A) The purchase of office supplies
• B) Wages expense incurred but not yet paid
• C) Tuition revenue collected in advance
• D) Payment of two years' insurance in advance

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Definitions:

Productive Assets

Assets that are utilized in the production process to generate revenue, including machinery, buildings, and equipment.

Investing Activities

Financial transactions related to the acquisition or sale of long-term assets and other investments not considered cash equivalents.

Direct Method

An accounting practice for presenting cash flows from operating activities by listing major classes of gross cash receipts and payments.

Operating Activities

Business actions involving the primary operations and transactions of a company.