One Major Difference Between Deferral and Accrual Adjustments Is That

question 18

Multiple Choice

One major difference between deferral and accrual adjustments is that:

• 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 (one account is increased and one account is decreaseD).

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Definitions:

Pre-call Preparation

The process of gathering relevant information and planning strategies before making a sales call or meeting a client.

Sales Territories

Designated geographic areas or customer groups assigned to a salesperson or team for the purpose of selling and customer management.

Segmenting the Market

The process of dividing a broader market into smaller, more defined categories based on certain criteria like demographics, needs, or behavior.

Territorial Boundaries

Geographic demarcations used to define the area of responsibility or control for individuals or organizations, particularly in sales and marketing.