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:

Narrative Literature Review

A comprehensive analysis and synthesis of published material on a specific topic, presented in a narrative format.

Failure To Replicate

The phenomenon where a study's findings cannot be reproduced under the same conditions, raising questions about the reliability of the original results.

Generalizable

Pertains to the ability of research findings to be applicable to broader populations or different contexts beyond the study sample.

Literature Reviews

Comprehensive surveys of existing research on a particular topic, typically used to establish a foundation for new research.