Accrued Revenue and Expenses: Understanding Assets, Liabilities,

(ACCRUED REVENUE ( Trear as an asset ) . Revenue earned but cash not yet enceived T Receivables & Revenue T UNEARED REVENUE ( Treat as a liability ) . when payment is received but goods on services are not yet peronided ACCRUED EXPENSE ( Jmeat as a liability ) . anpence incurred but not yet paid . PREPAID EXPENSE ( This as an asset ) payments made before services are received DEPRECIATION ( Assets unde ton of and CR ) . Use. of an Asset To generate Revenue . long term asset ci e prosperity , plant & equipment ) !! must be depreciated over their .useful life for Two reasons :- If To reflect the decrease in value due to use . 2To match the decrease in value of the assex with the revenue that it is helping generale . . It is a mon cash expense and reduces total assets, equity and net income