Which of the following statements about adjustments is correct?
A)An accrual adjustment that increases an asset will include an increase in an expense.
B)A deferral adjustment that decreases an asset will include an increase in an expense.
C)An accrual adjustment that increases an expense will include an increase in assets.
D)A deferral adjustment that increases a contra-account will include an increase in an asset.

Question

Quizplus · Accepted Answer

Each deferral adjustment involves one asset and one expense account,or one liability and one revenue account.Each accrual adjustment involves one asset and one revenue account,or one liability and one expense account.

Which of the Following Statements About Adjustments Is Correct