September 2021

What Is a Deferral? Its Expenses Prepaid or Revenue Not yet Earned

In simple terms, deferral refers to delaying the recognition of certain transactions. It’s like saying, “Hold on, we’ve received this money or paid this expense, but let’s not record it as revenue or expense yet.” However, it wouldn’t be appropriate not to record anything at all, because money is still trading hands. Debits and credits […]

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