Examlex
Which of the following is true about ECT?
Deferral
An accounting principle that postpones the recognition of an expense or revenue to a future accounting period.
Accrual
The accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.
Unexpired Insurance
The portion of paid insurance premiums that is applicable to future periods, representing coverage that has not yet been used or expired.
Accrued Asset
An asset that represents revenues or incomes that have been earned but not yet received in cash or recorded.
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