Identify the adjusting entry that is made at the end of an accounting period to reflect an exchange of cash prior to the performance of a related event is classified as a(n)
A) accrual entry.
B) deferral entry.
C) revaluation entry.
D) correcting entry.

Question

Quizplus · Accepted Answer

This scenario describes a deferral entry, where cash is exchanged before an event is performed, and an adjusting entry is made at the end of the period to recognize the event and allocate the cash exchange accordingly. A accrual entry would be made to recognize revenue or expenses that have been earned or incurred but not yet recorded. A revaluation entry would involve adjusting the value of an asset or liability based on market conditions. A correcting entry would be made to fix an error in a previous entry.

Identify the Adjusting Entry That Is Made at the End