[vodrldnr]

When entry is like

Interest receivable 100 / Interest revenue 100

is this accrual or deferral ? I thought it is accrual but wiley said it is neither accrual nor deferral…

[Nick_P]

Pretty sure that is an adjusting entry.

[leglock]

i don't see how that is not an accrual. You are accruing the interest revenue.

[PleaseLetmebeaCPA]

I also think this is an accrual.

[Skynet]

Accruals : Accruals is when the wife gives her man a list of things to do and fix.

Deferrals : Being a Man, he defers to do it at later time or when she yells at him to just do it.

The Interest : The list is now longer.

[Nick_P]

The way I understand it and I could be wrong. Adjusting entries are made for both accruals and deferrals. The above is the adjusting entry for recording interest income accrual; however, the entry is called an adjusting entry.

[vodrldnr]

Question for those you guys who says it is adjusting..

are you saying it is still accrual but the term I need use is not accrual but adjusting entry????

[Missy]

Is this in response to a particular question and can you put the entire question here? Sometimes its just a subtlty in the wording of the question that you believe they're asking something but they're actually asking something else.

My initial instinct is this is not an accrual because an accrual is recording an event that hasn't actually occurred yet but will. The entry you show looks to me like its recording interest that has already been earned, not planning for interest that will be earned but as I mentioned the wording of a question makes all the difference.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Author]

Replies