At the end of the year,accrual adjustments could include a:
A)debit to an expense and a credit to an asset.
B)credit to revenue and a debit to an expense.
C)debit to cash and a credit to Common Stock.
D)debit to an asset and a credit to a revenue.

Question

Quizplus · Accepted Answer

Accrual adjustments are needed when a company has earned revenue or incurred an expense in the current period but has not yet recorded it because the related cash will not be received or paid until a later period.As a result,accrual adjustments would include a debit to an expense account and a credit to a liability account or a debit to an asset account and a credit to a revenue account.

At the End of the Year,accrual Adjustments Could Include A