USA Accrued revenues


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On the NCCS Unified Chart of Accounts (click here) there is an account called Accrued revenues (1460) in the Other Assets section. I have Googled and am unable to find an explanation for what that is.
 
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Stephen Gsell

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This appears to be a "catch-all" other asset account used to record (on an accrual basis) any/all other income of (in this case) the non-profit. It's simply an "other" (short-term) asset account to be used when offsetting revenue. I don't believe you'll be able to find a definition, per se. It's a typical account you'd see in most chart of accounts.
 

Stephen Gsell

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No, Based on the chart of accounts given, that GL (general ledger) account number is a ST (short-term) asset listed in the "other assets" category. It's normal balance is a debit, not a credit. It would be used in an journal entry (as a debit) to offset an accrual of revenue. One such example an accountant might use this GL# is for an accrual of interest (revenue). But then again, I'd rather show such an event as accrued interest (book it in the 1300 class as "other receivables") rather than as "other assets". It's hard to say how that account would normally be used.
 

Stephen Gsell

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Also, just because you have an account listed in a chart of accounts doesn't necessarily mean (in my opinion) that it must be used.....especially an account listed under "other assets". More often than not, it (the account) really should be reclassified on the balance sheet under another GL account.
 
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Also, just because you have an account listed in a chart of accounts doesn't necessarily mean (in my opinion) that it must be used.....especially an account listed under "other assets". More often than not, it (the account) really should be reclassified on the balance sheet under another GL account.
I think that's excellent advise. For my part, I was more curious than anything.
 
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Stephen Gsell

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The recording of depreciation expense would be an example where one would normally use a "contra-asset" account - Accumulated Depreciation to post the credit side of the entry. Accumulated depreciation would be listed on the balance as a "contra" (opposite) asset account against it's related fixed asset. Accumulated depreciation thus has a normal credit balance.

The only examples I can think of when someone would use (GL#1460 - Other assets: Accrued Revenues) for a non-profit might be used for (1) a bequest and/or (2) when government grants and/or contracts have been submitted but not yet approved? (But I only base this on the assumption that similar grants/contracts have been approved in the past). Once the grants are formally approved, then re-class to GL#1240 (grants receivable).

Per as I said, this account would rarely (if ever) be used. Hope this helps!
 

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