In the Space Below,state Whether Each Situation Is a Deferral

question 46

Essay

In the space below,state whether each situation is a deferral or an accrual.
______a.Depreciation on machinery is $7,200 for the accounting period.
______b.Interest that has been incurred on a loan but that has not yet been paid or recorded is $675.
______c.Office supplies of $965 were on hand at the beginning of the period.Purchases of office supplies during the period totaled $640.At the end of the period,$120 in office supplies remained.
______d.Commissions amounting to $975 were earned but not yet collected by year end.
______e.Prepaid Rent had a $2,500 balance prior to adjustment.By year end,50 percent had expired.

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Definitions:

Lesser Sum

Refers to an amount of money that is smaller in comparison to another figure or expectation.

Obliged

Required or bound legally or morally to do something.

Garbage Pickup

The process or service of collecting and removing waste materials from a designated area.

Gratuitous Promise

A commitment or pledge made without expecting anything in return, often unenforceable in contract law.