is an adjustment that is an example of a deferral. A : Cash paid or received before expenses are recognized B : Cash received before revenues are recognized C : Cash paid or received before expenses or revenues are recognized D : Cash paid or received after expenses or revenues are recognized

C : Cash paid or received before expenses or revenues are recognized

Explanation:

When in an accrual accounting, cash is paid in advance for an expense or cash is received before providing services, is called a deferral. It is an adjustment that is required to adjust the early cash receive or payment. In that case, option C is correct because it is an example of deferral. Other options are incorrect.

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