Asked by Farid Habibi on May 08, 2024
Verified
Which of the following accounts would likely be included in a deferral adjusting entry?
A) Interest Revenue
B) Unearned Revenue
C) Salaries Payable
D) Accounts Receivable
Deferral Adjusting Entry
An accounting entry made to defer revenue or expense to a future period.
Unearned Revenue
Money received by a business for services or products yet to be delivered or completed.
Interest Revenue
Income earned from lending funds or investing in interest-bearing financial instruments.
- Gain an understanding of accrual and deferral concepts in the realm of accounting.
- Understand the function of unearned revenue in making adjustment entries.
Verified Answer
VN
Venessa NevarezMay 14, 2024
Final Answer :
B
Explanation :
Unearned revenue represents cash received from customers for goods or services that have not yet been provided. As a result, it is a liability account that requires adjusting entries to accurately reflect the current financial position of the business.
Learning Objectives
- Gain an understanding of accrual and deferral concepts in the realm of accounting.
- Understand the function of unearned revenue in making adjustment entries.
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