Advanced Accounting Chapter 21 - Accrual and Deferrals

Expenses incurred in one fiscal period but not paid until a later fiscal period.

• accrual
• accrued interest expense 
• accrued expenses
• deferral

Payments for goods or services which have not yet been received.

• accrued interest expense
• accrued expenses
• deferral
• deferred expenses

An entry made at the beginning of one fiscal period to reverse an adjusting entry made in the previous fiscal period.

• accrual
• reversing entry
• accrued expenses
• deferral

An entry recording revenue before the cash is received, or an expense before the cash is paid.

• accrual
• accrued interest expense
• deferral
• deferred expenses

Cash received for goods or services which have not yet been provided.

• accrued reveneue
• deferred revenue
• reversing entry
• accrued expenses

Interest incurred but not yet paid.

• accrual
• accrued interest expense
• accrued expenses
• deferral

An entry recording the receipt of cash before the related revenue is earned, or payment of cash before the related expense is incurred.

• accrued interest expense
• accrued expenses
•  deferral
• accrual basis

To record revenue that has been received but not yet earned, an entry is made that increases a liability account.

• True
• False

An expense that is paid in advance is recorded as an asset until the expense is incurred.

• True
• False

The reversing entry for accrued interest expense increases the balance of Interest Payable.

• True
• False