The posting of adjusting journal entries is the second activity found in the general ledger system.Adjusting entries fall into several categories.An adjusting entry made at the end of an accounting period that reflects the exchange of cash prior to performance of a related event is called a(n)
A)accrual entry.
B)deferral entry.
C)revaluation entry.
D)correcting entry.

Question

Quizplus · Accepted Answer

A deferral entry is an adjusting entry made at the end of an accounting period that reflects the exchange of cash prior to performance of a related event. Accrual entries, on the other hand, reflect the recognition of revenues and expenses that have been earned or incurred but have not yet been recorded. Revaluation entries reflect changes in the value of an asset or liability, and correcting entries are made to fix errors in previous entries.

The Posting of Adjusting Journal Entries Is the Second Activity