Deferred Revenue Expenditure
Definition
A large revenue expense whose benefit extends over several periods, written off gradually rather than all at once. The concept is used less under modern standards, which favour expensing or capitalising.
Related Terms in Core Accounting
Trial Balance vs Balance Sheet
A trial balance is an internal list of all ledger balances used to check that debits equal credits; a balance sheet is a formal statement of assets, liabilities and equity at a point in time, prepared from those balances.
Accounts Payable (AP)
Money your business owes to suppliers and vendors for goods or services received but not yet paid for. Tracked as a current liability on the balance sheet. HelloBooks automates AP with purchase orders, GRN matching, and vendor bill management.
Accounts Receivable (AR)
Money owed to your business by customers who received goods or services on credit. Tracked as a current asset. HelloBooks manages AR through invoicing, payment tracking, aging reports, and automatic reminders.
Accrual Accounting
An accounting method that records revenue when earned and expenses when incurred, regardless of when cash changes hands. Required by GAAP for most businesses above a certain size. Contrasts with cash-basis accounting.
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