A deferral exists when a company pays cash
A)at the same time the associated expense is recognized.
B)after recognizing the associated expense.
C)before recognizing the associated expense.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

A deferral occurs when a company pays cash before the associated expense is recognized, meaning the expense is recorded in a later period.

A Deferral Exists When a Company Pays Cash