Discussion Topic

"Deferral means Accrual " whether the statement is true? Explain.

"Deferral means Accrual " whether the statement is true? Explain.

by Mahmudul Hasan Siyam -
Number of replies: 1

An accrual pertains to:

  • expenses that should be reported now, but have not yet been recorded or paid, and
  • revenues that should be reported now, but have not yet been recorded nor has the money been received

deferral occurs when a company has:

  • paid out money that should be reported as an expense in a later accounting period, and/or
  • received money that should be reported as revenue in a later accounting period

In reply to Mahmudul Hasan Siyam

Re: "Deferral means Accrual " whether the statement is true? Explain.

by Shahana Kabir -
Good observation.Thanks for reply.