In the Space Below,state Whether Each Situation Is a Deferral

In the space below,state whether each situation is a deferral or an accrual.
______a.Depreciation on machinery is $7,200 for the accounting period.
______b.Interest that has been incurred on a loan but that has not yet been paid or recorded is $675.
______c.Office supplies of $965 were on hand at the beginning of the period.Purchases of office supplies during the period totaled $640.At the end of the period,$120 in office supplies remained.
______d.Commissions amounting to $975 were earned but not yet collected by year end.
______e.Prepaid Rent had a $2,500 balance prior to adjustment.By year end,50 percent had expired.

Correct Answer:

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a.Deferral b.Accrual...

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