Adjusting entries that reflect events that have already occurred but for which no cash flow has taken place and not previously entered into the accounts are called
A)accruals.
B)deferrals.
C)revaluations.
D)corrections.

Question

Quizplus · Accepted Answer

Adjusting entries that reflect events that have already occurred but for which no cash flow has taken place and not previously entered into the accounts are called accruals. These entries are made to match expenses with revenues in the period in which they are incurred or earned, regardless of when the cash is received or paid. Examples of accruals include accrued salaries, accrued interest, and accrued rent.

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