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Financial Accounting 101: Accruals and Deferrals - Accrual Accounting - Made Easy
3:26
YouTubeMV Learning Systems
Financial Accounting 101: Accruals and Deferrals - Accrual Accounting - Made Easy
This is the lesson that helped me to understand deferrals and accruals. Think of Deferrals as ‘Dollars before Action’ and Accruals as ‘Action before Dollars.’ Deferred Expense -- Asset: Prepaid Expense Think of this as an expense where we paid Dollars before the Action of incurring the expense. Our vendors owe us, this is an asset ...
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