Deferred Revenue Explained | Adjusting Entries

Deferred Revenue can be a real head-scratcher. As if Adjusting Entries weren't already confusing enough... Deferred Revenue, Unearned Revenue and Prepaid Revenue all mean the same thing!

In this video, you'll find out what these terms mean and I'll show how to account for them correctly, using Journal Entries and T Accounts.

I'm creating a whole mini-series devoted to this topic which will include worked examples for each of these four types of Adjusting Entry...

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[AccountingStuff]

We hit 10, 000 subscribers today 🤘Thanks for all of the support!!!

[linagebara]

Very clear explanation and the drawing of the timeline same page with T accounts makes it even clearer.

[ramu]

If it weren't for u, i would've never understood basics of accounting.

[rahafalrawahi]

Thank you so much for all your hard work 💜💜 ...your explanation makes everything look easy

[myphotosone]

Hi.. Could you please videos on Deferred Tax Asset and Deferred Tax liability? I am sure many Finance and Accounting students like me would be finding these topics difficult to crack. Many thanks in advance

[THECheeseGod]

In the Prepaid Expenses video, first Cash is moved to Expense, then Expense to Prepaid Expense, then finally released back in increments to Expense again.
Here, first Cash moves from Deferred Revenue (without having first passed through Revenue) before being then released back in increments to Revenue.

Numerically it seems these should be the same, but is there any significance to the difference?

[HackersSun]

So yeah this is like taxes
Not technically hard but its complex on what to call the cost

Just like the taxes I tried I got different numbers every time, ha!

[drinks_menu]

i dont understand why you moved the middle entry of 400 over to debit after you already recorded it as credit

[gravm]

I’m super happy you exist on YouTube if I’m not studying all I do is watch your videos. You explain things so clearly. 🤗

[cherylbreckenridge]

Thank you for explaining a concept I was completely stuck on! Watching your 4-part accrual series, as well as your earlier videos ie/ Balance Sheet etc, to help better understand what a textbook is doing a less than stellar job to explain! I have accomplished more in 24 hours watching your videos than the 3 months I've been at this Financial Accounting course - awesome job explaining everything - thank you! Your use of graphics and examples really brings it all home as well as concepts such as determining which statement is affected (ie/ releasing it from the Balance Sheet and assigning to the Income Statement), and why, really gives a stronger understanding than just memorizing. Oh, and DEALER is brilliant. Thank you!!!

[ninaoda]

Congratulations! 🎊 you deserve even more!
Keep it up 💪🏼 cause you are making such a big difference to all new accounting learners like myself!
Thanks James!

[ralfsdiezins]

How come I do courses, and when I need better explanation i come here. Its been 1 minute and 2 seconds, you show the definition and I'm thinking, why did the course professor didn't just say so.

[baharheravy]

James, thank you for your great videos. You are making accounting more interesting! Please continue making more videos :)

[financialcounting]

Accrual accounting produces the best financial statements for investors! It really helps investors predict future earnings much better than cash accounting. Thank you for showing us how to account for unearned revenue!

[YokeeYang]

I was confused with terms of ‘deferred’ & ‘ accrued’, but you clarify’ deferred’ very well in this short video so that I‘ve got it now and I am looking forward to’ accrued’ one! Thanks James!😊

[aleyaashahira]

if u r my teacher i will study everday lol💀

[innercitadel]

Keep it up. You are doing the best job on YouTube. 👍👍👍

[kathader]

My question: say you have decided to stay in the UK and you don't fly back to Vancouver. Now there's $400 stuck in deferred revenue that you're never going to recognize. What's the best way to handle that?

[hibadziri]

hiii u re doing a greattt jobb and u re helpiong me understand everything soooo quickly and easily. can you make a video about VAT ? and how to record it and when
THANKS A LOT

[maryahmedina]

are amazing!!!! Better than any accounting professor I ever had!!