Which of the following are items which are likely toneed an accrual adjustment at the year end?Select one:A. Motor vehiclesB. BankO C. Interest receivedO D. Sales

In order to recognize revenue or expense that has been earned or incurred but has not yet been…

Answered: Which of the following are items which…

Business

Accounting

Which of the following are items which are likely need an accrual adjustment at the year end?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 1MC: The cumulative effect of an accounting change should generally be reported as an adjustment to the...

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Which of the following are items which are likely to
need an accrual adjustment at the year end?
Select one:
A. Motor vehicles
B. Bank
O C. Interest received
O D. Sales

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