Recording an accrual entry involves recording a(n)________ or ________ at the end of an accounting period even though no explicit transaction occurs.
A)fixed asset; long-term liability
B)intangible asset; long-term liability
C)cash sale; credit sale
D)dividends; retained earnings
E)receivable; payable

Question

Quizplus · Accepted Answer

Recording an accrual entry involves recording a receivable or payable at the end of an accounting period even though no explicit transaction occurs. This is done in order to match revenues and expenses for the period and provide a more accurate representation of the company's financial position. Options A, B, C, and D are not related to the concept of recording accrual entries.

Recording an Accrual Entry Involves Recording A(n)________ or ________ at the End

Recording an Accrual Entry Involves Recording A(n) or at the End