Deferred Revenue Explained | Adjusting Entries

💥Adjusting Entries Cheat Sheet → accountingstuff.com/shop
🖊Adjusting Entry Practice Questions → accountingstuff.com/practice-...
Deferred Revenue can be a real head-scratcher. As if Adjusting Entries weren't already confusing enough... Deferred Revenue, Unearned Revenue and Prepaid Revenue all mean the same thing!
In this video, you'll find out what these terms mean and I'll show how to account for them correctly, using Journal Entries and T Accounts.
I'm creating a whole mini-series devoted to this topic which will include worked examples for each of these four types of Adjusting Entry...
▪ Intro to Adjusting Entries → • Prepayments and Accrua...
▪ Prepaid Expenses → • How Prepaid Expenses W...
▪ Deferred Revenue → • Deferred Revenue Expla...
▪ Accrued Expenses → • Accrued Expenses Broke...
▪ Accrued Revenue → • Accrued Revenue MADE E...
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cool, so cr unearned revenue, what about taxes payable?

[@AccountingStuff]

@@iwannaknow_2423 I left taxes out of this example to keep things simple.

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No problem Cheryl, it's sounds like you're feeling more confident with accounting which is fantastic news!

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Cheers Jwan, I'm glad you enjoyed it!

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I was confused with terms of ‘deferred’ & ‘ accrued’ , but you clarify’ deferred’ very well in this short video so that I‘ve got it now and I am looking forward to’ accrued’ one! Thanks James!😊

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Great to hear it's making sense :)

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No problem! I hope it went well :)

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Cheers Lucas! Hope your studies are going well :)

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Very clear explanation and the drawing of the timeline same page with T accounts makes it even clearer.

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Cheers, that's kind of you to say :)

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Thanks for your kind words!

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Accrual accounting produces the best financial statements for investors! It really helps investors predict future earnings much better than cash accounting. Thank you for showing us how to account for unearned revenue!

[@AccountingStuff]

No problem!

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Thanks!

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Cheers John! Plenty more coming soon :)

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Cheers Freshta! Hope it's making sense :)

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[@AccountingStuff]

Hey John, thanks for your suggestions! Have a great day too :)

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Thanks for your suggestion! I did a different qualification so I'm afraid I don't know too much about the CPA

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No problem Jonathan :)

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Cheers Rahaf, you're most welcome!

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Thanks Blair-Marie! Yes I would like to do a series on depreciation soon

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How did they go?

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No worries Kyle, cheers for your suggestion!

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Cheers Catherine! Thanks for the suggestion :)

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Love you James!! What is the difference b/w Deferred tax assets and Liabilities, Deferred revenue and Deferred revenue expenditure. Pls explain

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Thanks for your request!

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Thank you for your wonderful videos ! Could you please explain deferred tax topic in your videos , it would be great because the topic is difficult to summarize.

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Hey there, thanks for your suggestion!

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I think it would be. Despite legal questions on whether payments are refundable, you are still expected to perform the service you were paid for.

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Thanks men

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You're welcome :)

[@akashrout2886]

Perfectly explained! This is what I was looking for. *Subscribed* :) But I have one question, is this example in compliance with ASC606 accounting standard? If not, then can you give the accounting entries of 2nd example or any other example considering ASC606 where the Revenue can be booked before invoicing.

[@AccountingStuff]

Cheers Akash! This is a simple example to illustrate the concept. It's always important to check the standard in your area to ensure consistency. Thanks for the sub :)

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Thanks mate!

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Love this! I had no idea that this was how I tracked prepayments!

[@AccountingStuff]

Cheers Brook, hope it's making sense