Accrual adjustments involve increasing:
A)assets and revenues or increasing liabilities and expenses.
B)assets and expenses or increasing liabilities and revenues.
C)assets and decreasing revenues or increasing liabilities and decreasing expenses.
D)assets and decreasing expenses or increasing liabilities and decreasing revenues.

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 increase an expense account and a credit to increase a liability account or a debit to increase an asset account and a credit to increase a revenue account.

Accrual Adjustments Involve Increasing