Which of the following is an example of an accrual?

Question

Quizplus · Accepted Answer

Accruals are expenses that have been incurred but not yet paid. Option B mentions wages expense incurred but not yet paid, making it an example of an accrual.

The other options are:
A) This is not an example of an accrual because office supplies are considered expenses only when they are used, not when they are purchased. 
C) This is an example of deferred revenue, where the payment is received in advance but the service is yet to be provided. 
D) This is an example of prepaid expenses, where the payment is made in advance for the services to be received in the future.

Which of the Following Is an Example of an Accrual