One Major Difference Between Deferral and Accrual Adjustments Is

question 52

Multiple Choice

One major difference between deferral and accrual adjustments is:

• A)deferral adjustments involve previously recorded transactions and accruals involve new transactions.
• B)deferral adjustments are made after taxes and accrual adjustments are made before taxes.
• C)deferral adjustments are made annually and accrual adjustments are made monthly.
• D)deferral adjustments are influenced by estimates of future events and accrual adjustments are not.

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Definitions:

ATP

Adenosine Triphosphate, an organic compound that provides energy to drive many processes in living cells, including muscle contraction, nerve impulse propagation, and chemical synthesis.

Energy Metabolism

The process by which living organisms produce energy, through the conversion of food into usable chemical energy.

Closed System

An entity that does not exchange energy with its surroundings. Compare with open system.

Noncompetitive Inhibition

The binding of a substance (the noncompetitive inhibitor) to a site other than the active site of an enzyme, thereby lowering the rate at which the enzyme catalyzes a reaction. Compare with competitive inhibition.