Question

What is the Accounting Term to Describe the following type of Accounting Transaction ? Cash is...

What is the Accounting Term to Describe the following type of Accounting Transaction ? Cash is exchanged before any Good or Services is Used or Provided.

Group of answer choices

*Deferral

*Cash Basis

*Revenue

*Expense

*Prepaid

*Accrual

*Depreciation

Operating Income Less Other Income and Expenses will Equal ?

Cost of Good Sold

Gross Profit

Retained Earnings

Income Before Income Taxes

Net Income

Business   Accounting   
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Answer #1
1
Deferral is used to describe Cash is exchanged before any Good or Services is Used or Provided.
Examples of deferral include Unearned Revenue, Prepaid expenses.
Deferral is correct option
Note: Prepaid also denotes cash paid or received in advance before any Good or Services is Used or Provided.
2
Operating Income Less Other Income and Expenses will Equal Income Before Income Taxes
Income Before Income Taxes is correct option
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