Which of the following accounts would most likely lead to a deferred adjustment?
A)Prepaid expenses
B)Wages payable
C)Subscriptions revenue receivable
D)All of these are deferral adjustments

Question

Quizplus · Accepted Answer

Prepaid expenses are expenses that have been paid for in advance, such as insurance or rent. These expenses are initially recorded as assets but are gradually recognized as expenses over the period to which they relate, leading to a deferred adjustment. Wages payable and subscriptions revenue receivable are examples of accrual adjustments.

Which of the Following Accounts Would Most Likely Lead to a Deferred