**Quiz Question: Accrual Adjustments****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- C. Interest received- D. Sales---This question is designed to test your understanding of accrual accounting, a fundamental accounting principle where adjustments are made for income and expenses that must be recorded in the period they are earned or incurred, rather than when cash is exchanged.

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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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

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