Difference Between Prepaid Expenses Unearned Revenue

Chapter 3 - Wiley
1 Explain the time period assumption. 2 Distinguish between the revenue recognition principle and the matching principle. 3 The difference between the cost of the asset and its related This treatment of prepaid expenses and unearned revenues will ultimately result in the ... Visit Document

Accounting Principles, 5e - Wiley: Home
The difference between the cost of any depreciable asset and its related accumulated depreciation This treatment of prepaid expenses and unearned revenues will ultimately result in the same effect on the financial statements as initial Unearned Revenue Oct. 31 400 Oct. 2 1,200 ... Retrieve Full Source

Chapter 3: The Accounting Information System
Prepayments: Prepaid Expenses (cash paid to third party); Unearned Revenue (cash received from third party) Accruals: Accrued Revenues; The difference between financial statements prepared on a cash basis and those prepared on an accrual basis is in the timing of net income. ... Fetch Here

Rules Of Debits And Credits - Austin Community College ...
Payable, unearned revenue, sales tax payable, It is the difference between assets and liabilities and represents the residual interest of the owners (net assets). Expenses are increased with debits and decreased with credits. ... Fetch Content

Financial Accounting And Accounting Standards - Wiley: Home
Difference between the actual return and the expected return on plan assets and, Unearned Service Revenue shows a balance of $1,200 in the October 31 trial balance. Prepaid expenses OR Unearned revenues. Adjusting Entries for Deferrals SO 4 Prepare adjusting entries for deferrals. ... Read Content

C H A P T E R The Adjusting Process
Expenses, unearned revenues, accrued expenses, prepaid expenses. U. revenue recognition concept . V. unearned revenues ____ 1. The difference between the cost of a fixed asset and its accumulated depreciation. ___ 17. ... Read Full Source

Income Taxes - New York University
Future tax deductible due to current timing difference unearned revenue Books = accrual accounting Taxes = cash (ex. interest income on municipal bonds) pre-tax (book) income tax expense 4. Deferred (prepaid) expense 2. Deferred (unearned) revenue recognize ... Fetch Full Source

MULTIPLE CHOICE QUESTIONS CHAPTER 2 - UCF College Of Business ...
Prepaid Insurance. Unearned Revenue. Insurance Expense. Understatement of expenses and an understatement of liabilities. Difference between the original cost of the equipment and its related accumulated depreciation. ... Read More

REVENUE RECOGNITION PRINCIPLE - WVU College Of Business And ...
The difference between the cost of the asset and its related The adjusting entry results in a debit to a liability account and a credit to a revenue account. Examples of unearned This treatment of prepaid expenses and unearned revenues will ultimately result in the same effect ... Get Document

Unearned Revenue.rm - YouTube
Prepaid expenses are things you pay out and Unearned Revenue is something you eventually collect. whats the difference between prepaid expenses and unearned revenue??? theunit32 2 years ago Reply ... View Video

Current Liabilities On The Balance Sheet - Investing For ...
If demand is high, the store would sell all of its inventory, pay back the short term loans, and pocket the difference. This is known as utilizing leverage. Prepaid Expenses and Other Current Assets; Joshua Kennon Investing for Beginners Guide. Sign up for My Newsletter; Headlines; ... Read Article

Name Of Chapter
Prepaid expenses represent previously Since no service has been provided to the new tenant we must recognize an unearned revenue and Statement of cash flows. The income statement is created first by determining the difference between revenues and expenses. Net income ... Retrieve Full Source

The Difference In Financial Accounting Between Profit And Non ...
The Difference in Financial Accounting Between Profit and Non-Profit Organization Prepaid expenses Liability Current Liability AC/P Accrued Expenses Note /P A / R Unearned Revenue Prepaid Insurance Warranty Liability Total Current Assets Total Current ... Read Document

Accounting Period Concept: Allows For The Division Of The ...
Determining in which period the revenue and expenses of the business should be reported. Net income or loss is the difference between cash received and cash paid. Supplies and prepaid insurance. Unearned revenues. ... Read Here

Chapter 3
The difference between the cost of the asset and its related accumulated amortization is referred to as the net book value of the asset. PREPAYMENTS Prepayments are either prepaid expenses or unearned revenues. Unearned Revenue. C.R. Byrd, Capital. C.R. Byrd, Drawings. ... Fetch This Document

6 Blanchard Premium Accounting May2005 Final
The premium deficiency reserve is generally equal to the difference between the losses and expenses expected from the runoff of the unexpired policy term, and the unearned premium premium revenue through the unearned premium component. ... Doc Retrieval

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The major types of adjusting entries are prepaid expenses, unearned revenues, accrued revenues, 59._____The primary difference between prepaid and accrued expenses is that prepaid expenses have. c.debit Unearned Revenue and credit Prepaid Expense. ... Read Here

Deferred Acquisition Costs - Wikipedia, The Free Encyclopedia
All other expenses associated with the new business that do not vary with and are not primarily related to new policies are classified as non-deferrable acquisition expenses. DAC Amortization. If there is an Unearned Revenue Liability, ... Read Article

CHAPTERS 3 AND 9—ADJUSTING ENTRIES AND ACCOUNTING FOR ...
Prepaid Expenses—expenses paid in cash and recorded as assets Note how the balance sheet discloses the book value of each asset—the difference between an asset’s cost and its accumulated depreciation. When a deferred or unearned revenue is initially recorded as revenue, ... Access Full Source

What is the difference between a cash basis and accrual basis accounting system? Where is a prepaid expense reported in the financial statements? Where is unearned revenue reported in the The company has a bank loan and has incurred (but not yet recorded) interest expenses of $2,500 as of ... Read Document

Stud. Study Guide, 4th Ed. Fin. Acctg. Winter 01/02
(prepaid expenses or unearned revenue) or (b) accruals (accrued revenues or accrued expenses). Deferrals. 9. The difference between the cost of the asset and its related accumulated depreciation is referred to as the . book value. of the asset. e. ... Access Document

Deferred Tax - Wikipedia, The Free Encyclopedia
Revenue recognition; Trial balance; Fields of accounting; Cost; Financial; Forensic; Fund; Management; Tax (U.S.) Financial statements; A timing difference arises when an item of income or expense is recognized for tax purposes but not accounting purposes, ... Read Article

Chapter 4: Accrual Basis Accounting And The Accounting Cycle
Difference between when item is Often called unearned revenue Deferred expenses Dollars were paid in a prior transaction Adjustment made for expense incurred in current accounting period related to cash previously received Often called prepaid expenses Purchase of supplies is an ... Access Document

CHAPTER 4 Accrual Accounting Concepts Study Objectives
Prepayments fall into two categories--prepaid expenses and unearned revenues. 1. Prepaid expenses - expenses paid in cash and recorded as assets until they are used or consumed. Prepaid either prepaid expenses or unearned revenue. ... Get Doc