How do accrual adjustments affect liabilities and expenses?

Question

Quizplus · Accepted Answer

Accrual adjustments involve recognizing revenue or expenses that have been earned or incurred but not yet recorded in the financial statements. This means that when an accrual adjustment is made, it can increase the liability of the company if an expense has been incurred but not yet paid, and also increase expenses if revenue has been earned but not yet received. Therefore, choice A is the best answer.

How Do Accrual Adjustments Affect Liabilities and Expenses