In accrual adjustments, the revenue or expense is recognized before the cash is received or paid.

Name: In accrual adjustments, the revenue or expense is recognized before the cash is received or paid.
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Quizplus · Accepted Answer

Accrual adjustments are made to recognize revenue or expense when it is earned or incurred, regardless of when the associated cash is received or paid. This is a key feature of accrual accounting, which helps to provide a more accurate picture of a company's financial performance over time.

In Accrual Adjustments, the Revenue or Expense Is Recognized Before