Maurice Tutor

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Teaching Since: May 2017
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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 12 Aug 2017 My Price 5.00

adjustments affect balance

One major difference between deferral and accrual adjustments is: Answer

    accrual adjustments affect income statement accounts and deferral adjustments affect balance sheet accounts.
    deferral adjustments increase net income and accrual adjustments decrease net income.
    deferral adjustments are made under the cash basis of accounting and accrual adjustments are made under the accrual basis of accounting.
    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.

 

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Maurice Tutor
(5)
Status NEW Posted 12 Aug 2017 12:08 AM My Price 5.00

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