Deferrals & Accruals | Deferred Revenue, Deferred Expense, Accrued Revenue & Accrued Expense
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- čas přidán 5. 08. 2024
- This video discusses four types of adjusting entries:
-Deferred revenue adjusting entries are used to recognize revenue that has been earned but not yet received in cash.
-Deferred expense adjusting entries are used to recognize expenses that have been incurred but not yet paid in cash.
-Accrued revenue adjusting entries are used to recognize revenue that has been earned but not yet received in cash.
-Accrued expense adjusting entries are used to recognize expenses that have been incurred but not yet paid in cash.
The video provides examples of each type of adjusting entry and explains how to make the entry.
The video also discusses the importance of adjusting entries in ensuring that financial statements are accurate. Adjusting entries are necessary to match revenues and expenses to the correct accounting period. This helps to ensure that the financial statements accurately reflect the company's financial performance.
Some basic knowledge of Journal Entries (Debit & Credit) will help you follow and understand this video better!
00:00 Revenue & Expenses - Journal Entry
01:44 Deferred Revenue & Deferred Expense
09:04 Accrued Revenue & Accrued Expense
Thank you sir explained in detailed way, please make a video on provisions eg. Bad debts and depreciation..
You are very good sir thank you 🙏🏻🙏🏻 love from india
You are really really really great sir..plz make more videos
love that you included both perspectives. Thank you so much!
I will not need my Prof. in the college any more! Appreciate very much your work, Sir.
Thanks
what a great professor , you are better than my prof, next week is our exam and i still don't get it. but now its all fine thank u sir
very well explained, thank you for putting Deferred & accrual together, it is very helpful.
Easy to understand. Thanks for this Vedio.
Very clever explanation, putting all examples in one sheet.
The way you have explained is superb
Very clear. Thank you
this Video cleared all my doubts. Thank you very much sir..
Glad to be of help!
Amazing! Thank you so much for sharing this!
So clear. Thanks for the video❤
Wow great content ❤❤❤
Very well explained
Thank you Sir your way of explaining is awesome i really searching this type of video so long. This video cleared my all doubts. Thank you so much 🥰
Fabulously explained..
Very helpful video thank you ☺️
Thank you very much for your explanation, it helped me alot
Glad to hear that!
Explained very well 💯
Very well explained, Thank you
Glad it was helpful!
Thank you so much for this well displayed example. May I confirm that the reason you debited expenses rather than logging it as an asset was because the product was under the $2,500 threshold?
There are several reasons for why this could be the case - if the benefits of what you spend are short-lived, then they are expensed....on the contrary, if the benefits are long-lived, then you can capitalize them as an asset and depreciate it over time... Further, in line with your comment, if the amount spent is insignificant, expensing it is the way to go (think of a $10 pair of scissors - just expense it even if you'll probably use it for several years)!
@@joefessor Awesome. I understand now. Thank you so much!
Why in Accurred expenses it becomes different in borrowing
Difficult to imagine why cash would be credited to buyer when money goes out of his account, and seller is debited when he receives the amount.😐
The easiest way to visualize this is imagine when a benefit (could be cash or anything else) leaves from account A to B -> then you typically credit the source account A and debit the destination account B. You'll have to put aside the real-world definition of crediting and debiting your bank account. Hope this helps!
Very well explained