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Notes for prelim 1_Notes

Notes for prelim 1_Notes - Deferred Revenues/Expenses...

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Deferred Revenues/Expenses Deferred Revenues are previously recorded liabilities; this means that you have received money BEFORE you have performed the service, so until that service is provided you have incurred a liability (+L) and you Conversely, when the Deferred Revenues account is adjusted, you will debit the liability (decrease liability) and you will credit your fee revenue (+SE) Key Words: Unearned Examples: Unearned ticket revenue, deferred subscription revenue Similarly, Deferred Expenses are expenses in which you have paid cash BEFORE you have incurred the expense; in this instance, the Prepaid Expense (+A) is debited and cash is credited (-A) Conversely, when the Deferred Expenses account is adjusted, you will debit the incurred expense (-SE) and you will credit the Prepaid Expense (-A) Key Words: Prepaid Examples: Supplies, Prepaid Expenses (rent, advertising, insurance), buildings and equipment Accrued Revenues/Expenses Accrued Revenues are services you have performed but not yet earned revenue for;
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