One major difference between deferral and accrual adjustments is:
A)deferral adjustments involve previously recorded transactions and accruals involve previously unrecorded events.
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.

Question

Quizplus · Accepted Answer

The major difference between deferral and accrual adjustments is that deferral adjustments involve previously recorded transactions, such as prepaid expenses and unearned revenues, whereas accrual adjustments involve previously unrecorded events, such as accrued expenses and revenues. Deferral adjustments defer the recognition of revenue or expense to a future accounting period, while accrual adjustments record revenue or expense that has been earned or incurred but not yet recorded.

One Major Difference Between Deferral and Accrual Adjustments Is