An accrual is ________.
A)a transaction in which the action comes before the exchange of cash
B)a transaction in which the exchange of dollars comes before the action takes place
C)another term for a deferral
D)recorded when cash is paid in advance of receiving the service

Question

Quizplus · Accepted Answer

An accrual is a transaction in which the action comes before the exchange of cash. It represents an expense or revenue that has been incurred but has not yet been paid or received. Examples include accrued salaries, rent, interest, and taxes.

An Accrual Is ________