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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