One Major Difference Between Deferral and Accrual Adjustments Is That

question 70

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:

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A psychological disorder marked by a disruption and inconsistency among one's thoughts, memories, environment, behaviors, and sense of self.

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A character from Robert Louis Stevenson's novella, representing the good side of a person's dual nature.

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