Accrual accounting involves accruals and deferrals. Which of the following best describes accruals and deferrals?

  1. Accruals are concerned with expected future cash receipts and payments, while deferrals are concerned with past cash receipts and payments.
  2. Accruals are concerned with past cash receipts and payments, while deferrals are concerned with expected future cash receipts and payments.
  3. Both accruals and deferrals are concerned with expected future cash receipts and payments.
  4. Both accruals and deferrals are concerned with past cash receipts and payments

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