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Accounting adjustments
Impact of Accruals and Deferrals on Financial Statements
December 12, 2023
How do accruals and deferrals affect financial statements?
Accruals and deferrals affect financial statements by adjusting revenues and expenses to match the period in which they occur. Accruals recognize revenues or expenses before cash exchanges, while deferrals delay recognition until cash transactions occur, ensuring accurate reporting.
Tags : Accruals , Deferrals , Financial Statements , Accounting Adjustments