One major difference between deferral and accrual adjustments is:
A)deferral adjustments involve previously recorded transactions and accruals involve new transactions.
B)deferral adjustments are made after taxes and accrual adjustments are made before taxes.
C)deferral adjustments are made annually and accrual adjustments are made monthly.
D)deferral adjustments are influenced by estimates of future events and accrual adjustments are not.

Question

Quizplus · Accepted Answer

Deferral adjustments involve transactions that have already been recorded, but need to be deferred to a later period. Accrual adjustments, on the other hand, involve new transactions that have not yet been recorded, but need to be accounted for in the current period.

One Major Difference Between Deferral and Accrual Adjustments Is