Which of the following is an example of an accrual?
A)Debit Office Supplies Expense,credit Office Supplies
B)Debit Wages Expense,credit Wages Payable
C)Debit Rent Expense,credit Prepaid Rent
D)Debit Unearned Revenue,credit Service Revenue

Question

Quizplus · Accepted Answer

Accruals involve recognizing expenses incurred or revenues earned that have not yet been recorded in the accounts. Option B shows the recognition of wages expense that has been incurred but not yet paid, and is therefore an example of an accrual. Options A, C, and D do not represent accruals.

Which of the Following Is an Example of an Accrual