Accruals Text

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Pre-paid items				Balance sheet presentation
	Time 1		Time 2
	Cash outflow	→	Expense		Accrued assets: Pre-paid expenses
	Cash inflow	→	Revenue		Accrued liabilities: Deferred revenue

Accrued items				Balance sheet presentation
	Time 1		Time 2
	Revenue (other)	→	Cash inflow		Accrued assets: Accrued revenue
	Expense (other)	→	Cash outflow		Accrued liabilities: Accrued expenses
Revenue should be recognized with the debit to accounts receivable or contract assets. In contrast, "other" revenue (revenue associated with peripheral or incidental transactions) should be recognized with the debit to accrued revenue. Also see the accounting elements page for a more detailed discussion on how to distinguish revenue, other revenue and gains. Expenses should be recognized with the credit to accounts payable. In contrast, "other" expenses (expenses associated with peripheral or incidental transactions) should be recognized with the credit to accrued expenses. Also see the accounting elements page for a more detailed discussion on how to distinguish expenses, other expenses and losses.

Revenue should be recognized with a debit to accounts receivable or contract assets.

In contrast, "other" revenue (revenue associated with peripheral or incidental transactions) should be recognized with a debit accrued revenue.

Also see the accounting elements page for a more detailed discussion on how to distinguish revenue, other revenue and gains.

Expenses should be recognized with a debit to accounts payable.

In contrast, "other" expenses (expenses associated with peripheral or incidental transactions) should be recognized with a debit accrued expenses.

Also see the accounting elements page for a more detailed discussion on how to distinguish expensses, other expenees and losses.

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