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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Definitions:

Correspondence Styles

The various ways in which individuals communicate with each other, influenced by factors such as culture, personal experience, and context.

Open

State of being not closed, allowing access or passage through.

Return Receipt

A proof of delivery document that confirms the sender that their mailed item was delivered to the recipient.

Interoffice Memorandum

A written form of communication used within a company or organization to convey information between departments or employees.