Identify the adjusting entry that is made at the end of an accounting period to reflect an exchange of cash prior to the performance of a related event is classified as a(n)
A)Accrual entry.
B)deferral entry.
C)Closing entry.
D)Correcting entry.

Question

Quizplus · Accepted Answer

The adjusting entry made at the end of an accounting period to reflect an exchange of cash prior to the performance of a related event is classified as a deferral entry. This is because the cash has been received or paid, but the related event has not yet taken place, and therefore the transaction needs to be deferred to a future accounting period when the related event occurs.

Identify the Adjusting Entry That Is Made at the End