Adjusting entries that reflect events that have already occurred,but for which no cash flow has taken place are classified as
A) accruals.
B) deferrals.
C) revaluations.
D) corrections.

Question

Quizplus · Accepted Answer

Accruals are adjusting entries that recognize revenues or expenses that have already occurred but for which no cash flow has taken place. Thus, the best choice in this case is option A. Deferrals are adjusting entries that recognize cash flows that have already occurred but for which revenues or expenses have not yet been recognized. Revaluation is the process of adjusting the value of an asset or liability to reflect its current fair value. Corrections are adjustments made to correct errors or mistakes in the accounting records.

Adjusting Entries That Reflect Events That Have Already Occurred,but for Which