What Is the Main Difference Between Accrual and Deferral Adjustments

question 23

Multiple Choice

What is the main difference between accrual and deferral adjustments?

• A)Deferral adjustments are required to update previously recorded items whereas accrual adjustments are required to include items not previously recorded.
• B)Deferral adjustments are required under the cash basis of accounting whereas accrual adjustments are required under the accrual basis of accounting.
• C)Deferral adjustments are required to include items not previously recorded whereas accrual adjustments are required to update previously recorded items.
• D)Deferral adjustments are used for expenses whereas accrual adjustments are used for revenues.

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Definitions:

Death Anxiety

The fear or apprehension concerning death and dying, which can impact an individual's behaviors, beliefs, and emotional well-being.

George Homans

An American sociologist known for his work in developing social exchange theory.

Medicalization of Death

Modern medicine defines illness and health procedures needed (for example, tonsil removal was fairly routine with children in the 1940s and 1950s because medical science deemed it so) and determines procedures for the dying, which may prolong or shorten life. Not unlike childbirth via convenient-for-the-doctor Caesarean sections, modern medicine somewhat controls when we die and can control premature deaths.

Death-Denying Society

A society characterized by its reluctance to acknowledge or openly deal with the realities of death, leading to lack of preparation and understanding.