Which of the following is a distinguishing characteristic of a deferral?
A) It affects at least one liability account.
B) It always impacts the cash account.
C) It includes the adjustment of an amount previously recorded in a balance sheet account.
D) It increases a balance sheet account and decreases an income statement account.

Question

Quizplus · Accepted Answer

A deferral adjusts an amount previously recorded in a balance sheet account.

Which of the Following Is a Distinguishing Characteristic of a Deferral