Adjusting entries that are made to recognize revenue that has been earned but not yet received are called
A)corrections.
B)estimates.
C)deferrals.
D)accruals.
E)revaluations.

Question

Quizplus · Accepted Answer

Adjusting entries made to recognize revenue that has been earned but not yet received are called accruals. Accruals are adjustments made to ensure that revenues and expenses are recognized in the accounting period in which they are incurred, regardless of when cash is actually received or paid.

Adjusting Entries That Are Made to Recognize Revenue That Has