The financial statements are affected by which type(s)of adjustments?

Name: The financial statements are affected by which type(s)of adjustments?
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Question

Quizplus · Accepted Answer

Both deferrals and accruals affect the financial statements. Deferrals include adjusting entries for prepaid expenses and unearned revenues, while accruals include adjusting entries for accrued expenses and accrued revenues. These adjustments ensure that the financial statements reflect the accurate financial position and performance of the business.

The Financial Statements Are Affected by Which Type(s)of Adjustments