Question: Why do we sometimes record a revenue or expense as a deferred item? Wouldn't it be easier to always record revenue to a revenue account

Why do we sometimes record a revenue or expense as a deferred item? Wouldn't it be easier to always record revenue to a revenue account and remove any unearned revenue at year-end?

Step by Step Solution

★★★★★

3.41 Rating (148 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Deferred means to postpone or delay items We will be moving items that have already been record in our books We will move a liability to revenue or an ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Why do we sometimes say that the dividend discount model is actually an earnings model? How does Lintners findings relate dividends and earnings?

Why do we sometimes get multiple IRRs for a project?

Why might it be easier to recognize the costs of globalization than the benefits?

Lower of Cost or Net Realizable Value Example: Cane Co. uses FIFO and the perpetual method to account for inventory. At year end, the unadjusted inventory balance is $100,000. The company determines...

Inventory purchased on account would lead to a credit in which account? _____ Sales Accounts receivable Inventory Accounts payable Inventory sold on account would lead to a debit in which account?...

I need help with my final accounting project, requirements 2-11 ACG2021 Spring 2016 Comprehensive Financial Statement Analysis Project Group Members Last Name First Name #REF! #REF! #REF! #REF!...

Need help completing this project and all the requirements 1-11 ACG2021 Spring 2016 Comprehensive Financial Statement Analysis Project Group Members Last Name First Name #REF! #REF! #REF! #REF!...

Rule 4.3A Appendix 4E Preliminary Final Report Name of entity FARM PRIDE FOODS LTD ABN or equivalent company reference: 1. 42 080 590 030 Reporting period Report for the financial year ended 30 June...

When this exam was mailed to you, the 2020 Annual Report for Cisco Systems was also attached to the email. In addition two excerpts from that 10K was also provided: Cisco's Balance Sheet and Cisco's...

An experiment was conducted to compare the tenderness of meat cuts treated with two different meat tenderizers, A and B. To reduce the effect of extraneous variables, the data were paired by the...

Despite their differences, with which proposition are two economists chosen at random most likely to agree? Immigrants receive more in government benefits than they contribute in taxes. Rent celings...

CammIMS 1 6 1 . E . 0 0 3 . Discuss the different roles played by the qualitative and quantitative approaches to managerial decision making. Why is it important for a manager or decision maker to...

The particle of mass m is gently nudged from the equilibrium position A and subsequently slides along the smooth elliptical path which lies in a vertical plane. Determine the magnitude of its angular...

Many ancient Egyptian tombs were cut from limestone rock that contained uranium. Since most tombs are not well ventilated, guards, tour guides, and visitors may be exposed to deadly radon gas. In...

A small ball is projected horizontally toward an incline as shown. Determine the slant range R. The initial speed is v0 = 16 m /s, and the coefficient of restitution for the impact at A is e = 0.6....

Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells...

A small ball is projected horizontally as shown and bounces at point A. Determine the range of initial speed v 0 for which the ball will ultimately land on the horizontal surface at B. The...

A patient weighs 165 lbs. Gentamycin 2000mcg per kg is ordered. What is dosage in mg?

Scenario #1 Accrued Expense, Accrued Revenue, Prepaid Expense, Unearned Revenue ?? HIGHLIGHT CORRECT CHOICE ABOVE THE BALANCE IN THE PREPAID RENT ACCOUNT, BEFORE ADJUSTMENT AT THE END OF THE YEAR IS...

PacRim Careers provides training to individuals who pay tuition directly to the business. The business also offers extension training to groups in off-site locations. Additional information available...

1) Using accrual accounting, expenses are not recorded until the cash for the expense is disbursed. True False 2) The adjusting entry for accrued revenue always involves a: A.debit to an asset...

Multiple Choice (2 points each) Use the following information about Tulip Corporation to answer the next four questions. Tulip Corporation paid $4,800 on April 1, 2021 for two years of advertising on...

1-)General Journal Worksheet - complete and tied out Income statement Statement of owners equity Balance sheet 6-)Post closing trial balance May 1 - Issued Check No. 5200 to L&J Management Co. in...

Exercise 13-11 - ***ONLY NEED ANSWERS FOR QUESTION MARKS - ALL OTHER ANSWERS ARE CORRECT*** Early in 2017, Larkspur Equipment Company sold 600 Rollomatics during 2017 at $5,700 each. During 2017,...