Which of the Following Adjustments Would Not Be Described as an Accrual

question 65

Multiple Choice

Which of the following adjustments would not be described as an accrual?

• A)Recording interest that has been earned but will not be collected until the next accounting period.
• B)Recording operating expenses that have been incurred but not paid as of the end of the accounting period.
• C)Recording salary expense that has been incurred but not paid as of the end of the accounting period.
• D)Recording insurance expense relating to insurance premiums that were paid in advance.

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Definitions:

Goodwill

An intangible asset that arises when a company is purchased for more than the fair market value of its net assets, often attributed to reputation, brand, or intellectual property.

Entire Business

The complete operational structure of a company, including all assets, liabilities, operations, and activities.

Natural Resources

Resources that occur naturally in the environment and are utilized for economic gain, such as water, minerals, forests, and fossil fuels.

Land Improvements

Enhancements made to a plot of land to increase its value, which include landscaping, paving, and installing utilities.