[jomarie]

OK this is the final week of the month and testing window. Let’s plow it down!!! Those of you who are sitting with me this coming week……let’s knock it down!! Those of you who are preparing for early next testing window, go get a powerful study week as well. I know the weather is getting better by the day, but studying is only a temporary sacrifice to a successful future!!! Oooh, I like that line, I think I’m going to make it my signature quote. Let’s go get it!!!!

Started sitting in May 2002, on and off. But since 2008 I've been nonstop and my scores are....
AUD - 39, 48, 56, 65, 68, 73, 76!!! (Finally passed in Oct 2011!!!) Becker, NINJA, & Wiley
REG - 75 (Lost Credit) 72, 68, 73, 75 (Passed again in Aug 2011) Becker, NINJA, & Wiley
FAR - 65, 68, 75 (Lost Credit) 68, 73, 73, 80 (Passed again in May 2012) Roger, NINJA, & Wiley
BEC - 65, 68, 71, 72, 72, 71, 76 (Lost Credit)- 70, 76!!!! I AM DONE!!! - Roger, NINJA, & Wiley
After 10 long years of studying, I AM DONE!!!! Finally a Licensed CPA in the State of New York!!

[misanthrope87]

Uhh what is a deferred liability?? I thought it would be deferred liability.

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[goodluck2everyone]

sorry I meant to say ACCRUED liability

like this for example: (Debit) salary expense

(credit) salaries payable

but rent received in advance is still a current liability according to Wiley. Would it also be considered deferred?

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[misanthrope87]

Dude you have that switched around. That's a current liability. When you get money for services you did not perform, that's a deferred revenue (aka deferred liability I think).

Edit: Haha okay, for a second I thought you were trying to make me fail so it'll be in your favor. 😉

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[goodluck2everyone]

Didn't mean to do that 😉 You've been very helpful in my threads, cleared up N4P and Govt cash flows for me very well so I thank you

to recap, any contribution received that is donor stipulated to be used for purchasing assets is considered financing cash inflow for N4P lol

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[misanthrope87]

Yes for long term assets and other long term purposes I might add. 🙂

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[goodluck2everyone]

so the assets purchased must be long term? If the donor stipulated that the funds be used for say inventory, that wouldnt be considered financing?

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[Anonymous]

Okay let me get this straight:

Deferred revenue: Getting paid for something you haven't performed yet.

Current lib: What's that again? I remember reading this and I took a note of it, but can't find it….

[misanthrope87]

Expense incurred but not paid for yet.

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[Anonymous]

Duhhhh. I feel so stupid lol.

So rent received in advance is a current lib??

[goodluck2everyone]

xD now I'm just confusing the hell out of everyone

current liabilities are any liabilities that will be paid off within the fiscal year or current operating cycle, whichever is longer.

Think current portion of note payable, wages payable, utilities payable, etc

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[misanthrope87]

@CPA628

Liability: Expense incurred but not paid for yet.

Oh and don't forget deferred charges! Those are things that you paid for in advance, but haven't incurred expenses for yet.

I believe rent money received in advance is a deferred liability and maybe it could count as a current liability if you will earn it within the next year???

@goodluck

Well in the becker book it says that but gosh, that's a good question! Hm…

We should all go to sleep, must be late in any timezone lol.

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[Anonymous]

Right, so shouldn't rent received in advance be deferred revenue (aka a lib.) since the person who received the rent still has to provide the service…

[misanthrope87]

I think it could be both.

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[goodluck2everyone]

rent received in advance is considered a current liability because it is deferred revenue. All unearned revenue is generally considered to be a current liability because it is expected to be collected within a year. Think about it, how rare is it to receive money for services that we cannot perform within one year?

deferred liabilities are a lot more rare. A good example is deferred tax liability, something that will not be reversed with 1 year.

Revenue received in advance can be called both unearned revenue and deferred revenue, they both mean the same thing. Both also go in the current liabilities section of the balance sheet.

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[Anonymous]

Ohh make sense, So if a person has paid rent for 5yrs…1st year would be current lib, while other four would be deferred rev.

I hope the exam won't be this technical.

[Author]

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