Discussion Topic

The statement is not true. Because Deferral means unearned revenue or prepaid expense where accrual means accrued revenue and accrued expense. Unearned revenue means we receive cash from the customer but did not give service and we recognize this as liability on the other hand accrued revenue means we give the service to the customer and receive cash from the customer which increase owner's equity. And prepaid expense means we pay for expense for long time or more than accounting period which is recognized as asset on the other hand accrued expense means we pay for expense for accounting period.