Discussion Topic

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

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

by Abidur Rahman khan 193-15-13374 -
Number of replies: 1

Deferred revenue is income a company has received for its products or services, but has not yet invoiced for. They are considered “Liabilities” on a balance sheet.

The easiest way to distinguish between “Accrued” and “Deferred” is this: With any deferred expense, money changes hands first. With accrued expenses, it changes hands last.


In reply to Abidur Rahman khan 193-15-13374

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

by Shahana Kabir -
Good observation.Thanks for reply.