A deferral transaction is one in which ________.
A)the action comes before the cash
B)cash comes before the action
C)a company postpones recognizing cash transactions
D)the exchange of cash coincides with the economic substance of a transaction

Question

Quizplus · Accepted Answer

In a deferral transaction, cash is received or paid before the related revenues are earned or expenses are incurred, meaning the cash transaction precedes the action or recognition of the revenue or expense in the accounting records.

A Deferral Transaction Is One in Which ________