Alien Technology Transfer Interview Questions and Answers

Accrual entries are journal entries made to record revenue or expenses that have been earned or incurred, but have not yet been received or paid.

• Accrual entries are used to match revenue and expenses with the period in which they are earned or incurred, regardless of when the cash is actually received or paid.

• For example, if a company provides services in December but does not receive payment until January, an accrual ...read more

Deferral entry is an accounting adjustment made to defer the recognition of revenue or expenses to a later period.

• Deferral entry involves recognizing revenue or expenses in a future accounting period instead of the current period.

• Common examples of deferral entries include prepaid expenses and unearned revenue.

• Prepaid expenses are expenses paid in advance but not yet incurred, while unearned revenue is revenue received

Accrual entry is a journal entry made to record revenue or expenses that have been earned or incurred, but not yet received or paid.

• Accrual entry is used to match revenues and expenses to the period in which they are incurred, rather than when cash is exchanged.

• For example, if a company provides services in December but does not receive payment until January, an accrual entry would be made in December to record the rev...read more

A deferral entry is made to postpone recognizing revenue or expenses until a future period.

• Deferral entries are used to match revenue and expenses with the period in which they are actually earned or incurred.

• Common examples include prepaid expenses, unearned revenue, and deferred tax assets/liabilities.

• These entries are typically made at the end of an accounting period to ensure accurate financial reporting.