One Major Difference Between Deferral and Accrual Adjustments Is

question 55

Multiple Choice

One major difference between deferral and accrual adjustments is:

• A)accrual adjustments affect income statement accounts and deferral adjustments affect balance sheet accounts.
• B)deferral adjustments increase net income and accrual adjustments decrease net income.
• C)deferral adjustments are made under the cash basis of accounting and accrual adjustments are made under the accrual basis of accounting.
• D)accounts affected by an accrual adjustment always go in the same direction (i.e. ,both accounts are increased or both accounts are decreased)and accounts affected by a deferral adjustment always go in opposite directions.

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