One major difference between deferral and accrual adjustments is that deferral adjustments:
A)involve previously recorded assets and liabilities,and accrual adjustments involve previously unrecorded assets and liabilities.
B)are made after financial statements are prepared,and accrual adjustments are made before financial statements are prepared.
C)are made annually,and accrual adjustments are made monthly.
D)are influenced by estimates of future events,and accrual adjustments are not.

Question

Quizplus · Accepted Answer

Adjustments need to be made at the end of an accounting period to (1)update amounts already recorded in the accounting records and (2)include events that occurred but had not yet been recorded.The first type includes deferral adjustments and the second type includes accrual adjustments.Both types of adjustments may be influenced by estimates of future events and are made before financial statements are prepared.

One Major Difference Between Deferral and Accrual Adjustments Is That