The unique characteristic of an accrual adjustment is that the adjusting entry

Question

Quizplus · Accepted Answer

Accrual adjustments are made to record revenues that have been earned but not yet received in cash or recorded, and expenses that have been incurred but not yet paid in cash or recorded. This means that one side of the adjustment will increase a balance sheet account (to reflect either an asset or a liability that has changed due to the accrual) and the other side will increase an income statement account (to reflect the earned revenue or incurred expense).

The Unique Characteristic of an Accrual Adjustment Is That the Adjusting