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Paper #075676 :: Deferrals and Accruals
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A description of deferrals and accruals on balance sheets.

Written in 2006; 1,143 words; 2 sources; APA; $ 39.95

Paper Summary:

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)."

Tags: assets liabilities expenses

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