Which of the following events involves a deferral?
A)Recording interest that has been earned but not received.
B)Recording revenue that has been earned but not yet collected in cash.
C)Recording supplies that have been purchased with cash but not yet used.
D)Recording salaries owed to employees at the end of the year that will be paid during the following year.

Question

Quizplus · Accepted Answer

Recording the purchase of supplies constitutes a deferral because it involves the payment of cash before an expense (in this case,supplies expense)is recognized.

Which of the Following Events Involves a Deferral