Which of the following is an example of a deferral?
A)Wages recorded but not yet paid.
B)The purchase of a company vehicle.
C)Legal fees earned but not yet collected.
D)The accumulation of interest in a bank account.

Question

Quizplus · Accepted Answer

A deferral involves delaying the recognition of an expense or revenue. The purchase of a company vehicle is a deferral because the expense is recognized over time through depreciation.

Which of the Following Is an Example of a Deferral