An accrual adjustment is made for payment of an item in advance of use.

Name: An accrual adjustment is made for payment of an item in advance of use.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

An accrual adjustment is made for expenses that have been incurred but not yet paid or revenue that has been earned but not yet received. Payment of an item in advance is recorded as a prepaid expense and would not require an accrual adjustment until the expense is actually incurred.

An Accrual Adjustment Is Made for Payment of an Item