The biggest distinction between accruals and deferrals is

Question

Quizplus · Accepted Answer

Accruals involve recognizing revenue or expenses that have not yet been recorded in the accounting records, while deferrals involve recognizing revenue or expenses that have already been recorded but need to be adjusted to the appropriate amount. Thus, the distinction between accruals and deferrals is whether the activity has been recorded prior to the adjustment process. The other choices are not accurate descriptions of the distinction between accruals and deferrals.

The Biggest Distinction Between Accruals and Deferrals Is