Deferred Revenue & Expenses and Accrued Revenues & Expenses

Prepaid expenses

- prepaid rent -supplies - accumulated depreciation

Accrued Liabilities

- represent liabilities recorded when an expenses has been incurred prior to cash payment

examples of accrued receivables

-accounts receivable -interest revenue

Deferred Revenue

-created when a company receives cash from a customer in one period for good or services that are to be provides in future period

Examples of Accrued Liability

-salaries payable - interest payable

Accrued Expense

accounting expense recognized in the books before it is paid for. It is a liability, and is usually current.

Prepaid Expenses

cost that has already been incurred, but which has not yet been consumed - initially recorded as an asset, so that it appears on the balance sheet (usually as a current asset, since it will probably be consumed within one year) -indicates that a payment was made more than one year before the cost is expensed. This deferred expense will be reported on the balance sheet as a noncurrent or long-term asset

Accrued Receivables

involve situations when the revenue is recognized in a period prior to the cash receipt