Adjustments Which Are Necessary Because Cash for Expenses Is Paid

question 61

Multiple Choice

Adjustments which are necessary because cash for expenses is paid in advance or cash from income is received before the provision of goods or services are called:

• A) deferrals/prepayments.
• B) accruals.
• C) temporary adjustments.
• D) recorded adjustments.

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Definitions:

Integrating Information

The process of combining data from different sources to provide a comprehensive understanding.

Culture

The shared beliefs, values, norms, and practices that characterize a group of people or an organization.

Perceptions

The process by which individuals interpret and understand sensory information, shaping their view of the world.

Judgments

The process of forming an opinion or evaluation by discerning and comparing.