Which of the following is an example of an accrual?
A)The purchase of office supplies.
B)Wages expense incurred but not yet paid.
C)Rent revenue collected in advance.
D)Payment of two years' insurance in advance.

Question

Quizplus · Accepted Answer

An accrual is an expense or revenue that has been incurred but not yet paid or received. Wages expense incurred but not yet paid is an example of an accrual. The other choices are not accruals - A is an example of a purchase transaction, C is an example of unearned revenue, and D is an example of prepaid expense.

Which of the Following Is an Example of an Accrual