Which of the following is an example of a deferral error? a. initially recording advance payment of an insurance premium to Prepaid Insurance instead of Insurance Expense b. failure to record interest expense incurred but not yet paid c. failure to adjust Unearned Revenue to its proper balance at year end d. none of the above On April 1, 20X0, your company finances partial payment of the sale of machinery to a customer for a $20,000, 3-year, 8% note receivable. Inte est is payable annually on April 1. On December 31, 20X0, an adjustin entry debits Interest Receivable and credits Interest Revenue for $1,6 The entry necessary to correct the error before the books are closed wc include ... a. a $400 debit to Interest Revenue b. a $400 credit to Interest Expense c. a $400 credit to Unearned Interest Receivable d. a $400 credit to Sales Which of the following statements about accrual and deferral errors correct? a. Accrual errors affect only balance sheet accounts. b. Deferral errors affect only income statement accounts. c. Accrual and deferral errors affect both income statement a balance sheet accounts. d. All above statements are correct