Which of the following is an example of a deferral adjusting entry? All of these

Question

Which of the following is an example of a deferral adjusting entry?

All of these choices are correct.

On April 1, 2017, Tamarisk, Inc. paid $49900 cash for equipment that will be used in business operations. The equipment will be used for four years. Tamarisk's records depreciation expense of $49900 for the calendar year ending December 31, 2017. Which accounting principle has been violated?

No principle has been violated.

Cash principle.

Depreciation principle.

Expense recognition principle.

Explanation / Answer

1) Which of the following is an example of a deferral adjusting entry

So answer is a) Prepaid expense

2) Which accounting principle has been violated?

As per depreciation principle cost of assets should be allocated in useful life of assets.

So answer is c) Depreciation principle

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