Deferrals & Accruals | Deferred Revenue, Deferred Expense, Accrued Revenue & Accrued Expense

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

[jadeharris]

love that you included both perspectives. Thank you so much!

[MYTHOMINHTRAN]

I will not need my Prof. in the college any more! Appreciate very much your work, Sir.

[noviesolinavie]

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

[MrAB-pptt]

Thank you sir explained in detailed way, please make a video on provisions eg. Bad debts and depreciation..

[jeevanasknani]

very well explained, thank you for putting Deferred & accrual together, it is very helpful.

[Pradeepk]

this Video cleared all my doubts. Thank you very much sir..

[andululu]

Very clever explanation, putting all examples in one sheet.

[abiia]

Easy to understand. Thanks for this Vedio.

[nareshbandaru]

You are really really really great sir..plz make more videos

[priyankasatope]

You are very good sir thank you 🙏🏻🙏🏻 love from india

[FindingMoreInLess]

Amazing! Thank you so much for sharing this!

[syedacreationmenhdidesign]

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 🥰

[sktmpsm]

Thank you very much for your explanation, it helped me alot

[lillyflower]

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?

[munasalim]

Why in Accurred expenses it becomes different in borrowing

[samrendersingh]

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.😐