Which of the following adjustments would not be described as an accrual?
A)Recording interest that has been earned but will not be collected until the next accounting period.
B)Recording operating expenses that have been incurred but not paid as of the end of the accounting period.
C)Recording salary expense that has been incurred but not paid as of the end of the accounting period.
D)Recording insurance expense relating to insurance premiums that were paid in advance.

Question

Quizplus · Accepted Answer

The term deferral describes a revenue or an expense event that is recognized after cash has been exchanged.Commonly,deferred expenses include prepaid insurance.On the other hand,the term accrual describes a revenue or an expense event that is recognized before cash is exchanged.The other three answer choices describe accruals: interest receivable,accounts payable,and salaries payable.

Which of the Following Adjustments Would Not Be Described as an Accrual