Item costs that have been incurred, but not yet paid, are called:
A)referrals.
B)deferrals.
C)accruals.
D)non-cash items.

Question

Quizplus · Accepted Answer

Item costs that have been incurred, but not yet paid, are referred to as accruals. Accrual accounting involves recognizing revenue and expenses when they are earned or incurred, regardless of when the cash is received or paid. Accrued expenses are posted as liabilities on the balance sheet.

Item Costs That Have Been Incurred, but Not Yet Paid