Adjusting entries for accrued revenues and accrued expenses are similar in that:
A)They both involve cash flows after service.
B)They both involve cash flows before service.
C)They both debit temporary accounts.
D)They both credit temporary accounts.

Question

Quizplus · Accepted Answer

Both accrued revenues and accrued expenses involve recognizing revenues or expenses before cash is exchanged but the cash flow related to these transactions occurs after the services are performed or consumed.

Adjusting Entries for Accrued Revenues and Accrued Expenses Are Similar