One major difference between deferral and accrual adjustments is:
A)accrual adjustments are influenced by estimates of future events and deferral adjustments are not.
B)deferral adjustments are made before taxes and accrual adjustments are made after taxes.
C)deferral adjustments are made monthly and accrual adjustments are made annually.
D)accounts affected by an accrual adjustment always go in the same direction (i.e.,both accounts are increased or both accounts are decreased)and accounts affected by a deferral adjustment always go in opposite directions.

Question

Quizplus · Accepted Answer

In accrual adjustments, both accounts involved are either increased or decreased, reflecting the recognition of revenues or expenses that have been incurred but not yet recorded. In deferral adjustments, one account is increased while the other is decreased, reflecting the postponement of revenue or expense recognition.

One Major Difference Between Deferral and Accrual Adjustments Is