Which of the following best describes when an accrual adjustment is required?
A)An expense has been incurred and paid in cash.
B)An expense has been incurred but not yet paid in cash.
C)An expense has not been incurred,but cash has been paid.
D)An expense has not been incurred nor has it been paid in cash.

Question

Quizplus · Accepted Answer

Accrual adjustments are needed when a company has earned revenue or incurred an expense in the current period but has not yet received or paid the related cash.The related cash will not be received or paid until a later period.

Which of the Following Best Describes When an Accrual Adjustment