One Major Difference Between Deferral and Accrual Adjustments Is That

question 187

Multiple Choice

One major difference between deferral and accrual adjustments is that deferral adjustments:

• A)involve previously recorded assets and liabilities,and accrual adjustments involve previously unrecorded assets and liabilities.
• B)are made after financial statements are prepared,and accrual adjustments are made before financial statements are prepared.
• C)are made annually,and accrual adjustments are made monthly.
• D)are influenced by estimates of future events,and accrual adjustments are not.

Comprehend the importance and methods of managing receivables and the implications for cash flow.

Grasp the economic and operational considerations in extending credit to customers.

Recognize the characteristics of creditworthy customers through the five Cs of credit.

Understand the basic concepts and theories of motivation.

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