Which of the following is an example of an accrual?
A)Wages incurred but not yet paid.
B)Payment of insurance 8 months in advance.
C)Purchase of equipment for use in the business.
D)Revenue collected in advance from customer.
E)All of the above.

Question

Quizplus · Accepted Answer

An accrual refers to an expense that has been incurred but not yet paid for, as in the case of wages that have been earned by an employee but not yet paid. The other options do not provide examples of accruals.

Which of the Following Is an Example of an Accrual