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3 years ago

Meadows Manufacturing follows the accrual system. An accrual results when __ and a deferral results when .

Business

1 answer:

SashulF [63]3 years ago

6 0

Answer:

A . $6,000 cash is received after a customer has been billed; $4,500 cash is paid for next quarter's insurance for property.

Explanation:

The accrual system is a bookkeeping method where expenses and income are recognized as they are incurred regardless of whether money has moved in or out. In the accrual method, a sale will be recorded when an invoice is generated even if the customer has not paid.

Expenses are also recorded are they are incurred. Material ordered will be recognized as an expense when the order is prepared, and not when payments were made. The accrual system makes the comparison of income and expenses for a period possible. One drawback is that a firm pays taxes for incomes it has not actually received.

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Answer:

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3 years ago

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Answer:

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Explanation:

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3 years ago

Read 2 more answers

A business entity operated and taxed like a partnership, but with limited liability for the owners, is called a:

Masteriza [31]

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3 years ago

Meadows Manufacturing follows the accrual system. An accrual results when ____________ and a deferral results when __________.

Meadows Manufacturing follows the accrual system. An accrual results when __ and a deferral results when .