What is deferred revenue and deferred expenditure? Is there any difference between prepaid income and prepaid expense AND deferred revenue and deferred expense? Deferred revenue and deferred expense are similar like prepaid income and prepaid expense..? They all come in assets and liabilites only.. then y there is a difference..?
Plz tell me what entries should be passed?
Explain with some examples?
prepaid is the term genrally used in short term time perioed where as deffered is the word used for a expenses which benifits for a long term time perioed.
Prepaid Income and prepaid expenses -
its an income received in adavance or expense paid in advacnce before its due - short term
Deferred revenue and deferred expenses
its a revenue received in advance or expences paid in advance - long term- which will be written of in parts over the period during which the benefit will acccrue.
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