Which of the following transcation is not a example of Deferrals?Question 24Answera.Paid $400 for a one-year insurance policyb.Received advance payment of $5,000 a year-long subscriptionc.Interest expense for the month amounts to $500d.Received advance payment from customers

The transaction that is not an example of deferrals is "Interest expense for the month amounts to $500".

Here's why:

Deferrals refer to the delay or postponement of the recognition of an expense or revenue. In other words, the cash transaction has already occurred, but it has not yet been recorded in the financial statements.

a. "Paid $400 for a one-year insurance policy" is a deferral because the company has paid for the insurance policy (cash transaction has occurred), but the expense will be recognized over the course of the year.

b. "Received advance payment of $5,000 a year-long subscription" is a deferral because the company has received the cash, but the revenue will be recognized over the course of the year as the service is provided.

c. "Interest expense for the month amounts to $500" is not a deferral because the expense is being recognized in the same period that the cash transaction is occurring.

d. "Received advance payment from customers" is a deferral because the company has received the cash, but the revenue will be recognized as the goods or services are