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.
Deferred Revenue -- Liability: Unearned Revenue
Think of this as revenues that we accepted Dollars before the Action of earning them. We owe our customers, this is a liability.
Accrued Expense -- Liability: Account Payable
Think of this as a time when the Action of incurring an expense came before the Dollars we need to pay. We owe our vendors money, this is a liability.
Accrued Revenues -- Asset: Account Receivable
Think of this as the Action of earning the revenues came before receiving the Dollars we need to collect. Our customers owe us money, this is an asset.

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When he pulled up that dollar before action sht, I was like this guy is a genius

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His metaphor in teaching is worth to learn!

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The fact I was able to learn this on a work break. This guys is a crazy good teacher

[@s.b.2450]

Four lines that explain it better than the entire chapter of my book + a lecture in a class.

[@thetimecapsuleproject4090]

My professor tried to explain this in 3 days, you wereable to explain it in 3 mins. Thank you!

[@MURDR63]

Dude, this very simple method (action before dollars and visa-versa) helps A TON! Between that, and DC DEALER, it's a piece of cake!

[@michaelknapp4639]

Glad it worked for you, I'm happy to help!

[@hummingmoon2592]

Ive been so frustrated over something I learned 2 years ago and all it took for me to cool down was this 3 minute video. Thank you.

[@abdullahtahseenbutreal]

watched 5, 10min+ videos (without getting it), and you were able to teach it that quick....

[@timothygudz8756]

Dollars before actions and Action before dollars! Brilliant!

[@erikscustomguns]

Thank you so much I was looking for a concept to memorize deferred vs accrued. This is perfect!

[@himaniken8304]

A perfect example to learn the concept.

[@tejachmay718]

Best explanation out there. The dollars before action and action before dollars trick helps understand them intuitively. Thank you!!

[@max0444]

Thank you so much I have got this wrong so many times. Your explanation was simple and concise.

[@Purple_pink14]

This was amazing! I am making you my study material for my Acct 101 class this semester. I was stuck on this concept for an hr. Thank you!!

[@smileydeception1947]

Comment section is right, you deserve a medal!!! Thank you so much for this simple method! You teach so much better than my professor T^T.

[@quanao5599]

Your explainations are awsome, but it would be much more appreciated if you provide some specific examples and analysis

[@jocelynalmirante8592]

simplest and best way in explaining concepts. thank you, sir! more power to your channel ❤

[@temesgensheycha5422]

Genius...I was litteraly struggling to understand and I got it in 3mn. Thank you so much sir

[@isabellalexic]

This video is so good. I kept forgetting which means what but the A and D thing is so smart thank you so much

[@vijaykumarCA]

Mannnn....this is out of universe you blown tge head of thousands of teachers....wow what a great teaching

[@QueenyEleo]

Short, Clear, Easy…THANK YOU!

[@clashwitht3093]

Thank you so much sir my professor couldn't explain this concept in my hour and 15 minute lecture.

[@dhanya_contemplation]

Best video on accurals and deferrals ever ! Thank you

[@nikhilmohan9338]

Dollar & Action ! Simple and easy to understand concept .I wish you were my teacher in School

[@shirley-d5p]

Wow! So easily understand! Much help for me!!!

[@denisesmith1729]

You are a blessing for someone 50 going to college 🙏 keep posting

[@elverbell1821]

You just explained this better than a Upen Professor! Thank you

[@ladyshiloh19]

Thank you so much. Very well explained.

[@thebakedpilot8162]

You just made that way easy for me, I was having a hard time understanding it. Thanks!

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How just simplistically you have explained the toughest Concept for me.👍👍

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Thank you so much! I have been struggling with this for so long!

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You are a good teacher!!!!!

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Great video, really nice trick to uderstand this concepts!!!!

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Very good explanation, thank you.

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Dude, you're the best. Thank you so much

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absolutely fire video. terrific job my man

[@enyejii]

Creative and very-well explain.

[@AyD_Man]

Very easy to understand.
Thank you good sir!

[@lainiec473]

wow. I am so glad I found this! I understand the difference now. Thank you so much!!

[@marierri]

Love the simplicity. Ty!

[@AbdulQadir-gf5nv]

Perfect & Simple explanation 👍🏼

[@rawanaljurbua2205]

Nice Explanation! You made it easy for us.

[@kushpatelstudent6862]

Wow thanks you just boosted my understanding of this concept

[@BD-ou7gh]

Thank you so much for simple and informative explanation. ❤️

[@ghadaali1751]

You are a life saver !!!!

[@ronybony9631]

golden words!! Thanks a lot for the explanation

[@anaballesteros7282]

Just learning the terms, you made extremely easy and clear! Thank you

[@keitsukishima9285]

Thank you so much for this!!❤

[@ganeshkumarakasapu47]

Said in very simple way it's awesome👍

[@mikemac687]

Great video and the best way that I have ever been shown how to view accruals and deferrals. Thank you!

[@christianm2527]

Holy shit , just finally learned this. Thank you man

[@shaktimohanty7211]

It was really helpful. Just saw all the videos on your channel. But I wonder why you stopped uploading. Would be really great if you can upload more videos with other Accounting/Finance topics.

[@sareenfatima6114]

Underrated!!

[@gletterman8568]

This really helped thanks so much

[@Thepianobird]

easily understood ..... good job

[@milask7098]

That's a looooot it's so helpful and understandable ☺️☺️☺️

[@bernardosaraiva8255]

Great vídeo, best regards from Portugal🇵🇹

[@ismails7627]

Excellent! Best explanation 👌

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So helpful man. Love❤

[@harleengonzalez2364]

This was very helpful. Thank you so much.

[@graceduran9005]

Thank u! Great video

[@shivampali3596]

Great Explaining skills

[@leonapickering6266]

love the explanation where you said Dollars before action and Action before dollars. That makes it easier to understand . Many thanks.

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Thanks! this made it so much easier! i’ll definitely using your channel!!!

[@sunilsain9828]

Fantastic method to teach conecpt

[@jrvm0821]

This helped a lot 😊

[@katyanatasha7]

Thanks so much for your help✨

[@kiranpvd8403]

Perfect explanation...

[@dietherbaculi7215]

Thank you it helps a lot

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Excellentttt i love it

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Super helpful! You deserve way more subscribers

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made it easier thank u

[@RK567]

thank you! it finally makes sense to me.

[@Vikermajit]

Tq for the tip, kind sir.

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Thank you sooooo much man

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Mind blowing trick

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Thank you very much

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Awesome! Thank you.

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You made my day......

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thank you so much!

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Thankyou for clearing

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Thank you!!!

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Nice mnemonic!

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well done

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THANK YOU SO MUCH

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superb

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Awesome

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ok I needed this

[@Jack1803]

Thanks!

[@brainwave9135]

Thanks sir

[@traveleverything]

it is amazing! very clever how you came up with these A and D examples..

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real top g

[@outsiders2074]

just perfect

[@ubaidullahhassan3932]

Great

[@geraldcapo4400]

Accured revneue isnt the same as an account receivable
Account Receivable: Money owed to a company by its customers for goods or services delivered but not yet paid for. It is recorded when an invoice is issued.
Accrued Revenue: Revenue earned by a company for goods or services provided but not yet billed to the customer. It is recorded when the service is performed or goods are delivered, even if the invoice hasn't been issued yet.
Both are types of receivables but are recognized at different stages of the billing process.

[@atheera9444]

What about entry about each of them

[@almarwamunir4959]

thumbs up

[@almarwamunir4959]

nice

[@qasmb1546]

What about deferred tax

[@sarapelliciardi9288]

grazie frate

[@meghaarora8810]

Pls upload more videos