| 00:00 - 00:02 | I just sold goods on credit |
| 00:02 - 00:04 | I'll record it later |
| 00:05 - 00:06 | He must record it now! |
| 00:07 - 00:08 | Record what? |
| 00:08 - 00:09 | The revenue! |
| 00:09 - 00:11 | Are you talking about the Revenue Recognition Principle? |
| 00:12 - 00:13 | Yes, it is very important |
| 00:13 - 00:16 | He has just earned a revenue by providing goods |
| 00:16 - 00:18 | But he didn't receive any cash? |
| 00:18 - 00:21 | That's right, but he must record the transaction now. |
| 00:21 - 00:25 | He must debit accounts receivable, and credit sales revenue |
| 00:25 - 00:27 | This is an example of accrued revenue |
| 00:28 - 00:29 | Then later on when he receives payment |
| 00:30 - 00:33 | he will debit cash & credit accounts receivable |
| 00:34 - 00:37 | The opposite is deferred revenue, when he would receive cash... |
| 00:37 - 00:38 | before he provides the goods? |
| 00:39 - 00:41 | Deferred is cash before providing goods? |
| 00:41 - 00:44 | Yes, that's right. Are you an Accounting A student? |
| 00:44 - 00:46 | Yes, you're apart of my screencast assignment!! |
