One major cifference bebween deferral and accrual adjustrents is thet: accrual adjustments affect income statement accounts and deferral adjustments affect balarice sheet accounts. daterral adjustmonts incroase net income and accral acdjustments decrease net incoma cleferral adjustments are made under the cash basis of eccounting and accrual edjustments are made under the accrual basis of accounting accounts affected by an eccruel adjustment always go in the s O O erne direction fi.e, both eccounts are increased or both accounts are decreasedi and accounts affected by a deferral adjustment always go in opposite directions (one account is increesed and one account is dlecreased