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.

---

Definitions:

Depot Service

A support service that repairs and maintains equipment at a central location outside the customer's premises.

Maintenance Department

A division within an organization responsible for the upkeep, repair, and smooth operation of equipment and facilities.

System's Equipment

The machines, tools, and technology required for the operation and maintenance of a system or facility.

Total Productive Maintenance

A proactive maintenance approach focusing on maximizing equipment effectiveness through the participation of all employees.