Deferrals and Accruals Essay by writingsensation

Deferrals and Accruals
A description of deferrals and accruals on balance sheets.
# 75676 | 1,143 words | 2 sources | APA | 2006 | US
Published on Dec 18, 2006 in Accounting (Financial) , Economics (Micro)


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Description:

This paper describes deferrals as prepaid expenses and accruals as accrued liability. It explains what these terms mean and how they are found on balance sheets. The paper gives examples of the terms that are described above.

Table of Contents:
Deferrals: Prepaid Expenses
1. Prepaid Expenses Recorded Initially as Assets
2. Prepaid Expenses Recorded Initially as Expenses
Deferrals: Unearned Revenues
1. Unearned Revenue Recorded Initially as Liabilities
2. Unearned Revenues Recorded Initially as Revenues
Accrued Liabilities
Accrued Assets

From the Paper:

"Tracy (1997) stated that accrued liabilities is a short-term liabilities that arise from the gradual buildup of unpaid expenses, such as vacation pay earned by employees or profit-based bonus plans that are not paid until the following year. Example of an accrued liability is the salary of the employees. The amounts of such accrued but unpaid terms at the end of the fiscal period are both an expense and a liability (Fess and Niswonger, 1986)."

Cite this Essay:

APA Format

Deferrals and Accruals (2006, December 18) Retrieved April 22, 2019, from https://www.academon.com/essay/deferrals-and-accruals-75676/

MLA Format

"Deferrals and Accruals" 18 December 2006. Web. 22 April. 2019. <https://www.academon.com/essay/deferrals-and-accruals-75676/>

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