A deferral transaction is one in which ________. A) the action ...

[CQXA]

A deferral transaction is one in which ________.
 
  A) the action comes before the cash
  B) cash comes before the action
  C) a company postpones recognizing cash transactions
  D) the exchange of cash coincides with the economic substance of a transaction

Question 2

The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be
 a. Jan. 1 Merchandise Inventory 1,600
  Accounts Payable 1,600
  b. Jan. 1 Office Supplies 1,600
  Accounts Payable 1,600
  c. Jan. 1 Purchases 1,600
  Accounts Payable 1,600
  d. Jan. 1 Purchases 1,600
  Accounts Receivable 1,600

[dellikani2015]

Answer to Question 1

B

Answer to Question 2

c