Which of the following is an example of a deferral adjustment?

Question

Quizplus · Accepted Answer

Prepaid expense is an example of a deferral adjustment, as it involves recognizing an expense that was paid for in advance (i.e. prepaid rent or insurance). Option A (accrued expense) and B (accrued revenue) are examples of accrual adjustments, which involve recognizing an expense or revenue that has been incurred but not yet recorded. Therefore, D is incorrect because not all of the options are correct.

Which of the Following Is an Example of a Deferral