Which of the Following Situations Involves a Deferral

question 165

Multiple Choice

Which of the following situations involves a deferral?

• A) Recording accrued interest
• B) Recording depreciation
• C) Recording unrecorded wages
• D) Recording unrecorded revenue

---

Definitions:

Estimated Payment

Payments made to cover taxes on income not subject to withholding, like earnings from self-employment, often paid quarterly to avoid underpayment penalties.

Subchapter S Corporation

A Subchapter S Corporation is a form of corporation that meets specific Internal Revenue Code requirements, allowing it to pass income directly to shareholders and avoid double taxation.

Corporate Net Income

The amount of profit a company has earned during a specific period after all expenses, taxes, and costs have been subtracted from total revenue.

Proportionate Share

A portion or percentage of an entity or amount that corresponds to an individual's part in the whole.