Publisher: Baruch Computing and Technology Center, Bernard M. Baruch College
Date: 2006
Description: This session introduces accruals and deferrals. The word accrual is used in accounting as an abbreviation of terms accrued expense or accrued revenue. Accrued expense is a liability resulting from an expense for which no invoice or other official document is available yet. Similarly, accrued revenue is an asset resulting from a revenue for which no official document is issued yet. The term deferral is most commonly used in accounting as an abbreviation of deferred revenue or deferred expense. Deferred income is a liability. It is recorded when an asset is recorded, but the related income will be earned only in the future. Deferred expense is an asset. It is recorded when a liability is recorded, but the related expense will be incurred only in the future.
The tutorial is presented by John Shon, Professor of Accountancy at Zicklin School of Business and produced by Baruch Computing & Technology Center (BCTC).
Subjects: Accounting Financial statements Accounting--Study and teaching
