Which of the following events involves an accrual?
A) a cash payment received from a customer before services are provided
B) supplies purchased with cash but not yet used
C) interest earned but not received
D) A and C

Question

Quizplus · Accepted Answer

Accrual refers to revenue or expenses that have been earned or incurred, respectively, but not yet received or paid. Interest earned but not received is an example of an accrual. Option A is a prepayment, and option B is a type of asset known as prepaid expenses.

Which of the Following Events Involves an Accrual