Final answer:
In accounting, the two types of deferrals that can be overridden are prepaid expenses and unearned revenues, aligning the recognition of expenses and revenues with the period in which they are actually incurred or earned.
Step-by-step explanation:
The two types of deferrals that you can override in accounting are prepaid expenses (expenses paid in advance) and unearned revenues (revenues received before services are performed). When deferrals are entered in the accounting records, they are recognized in a way that matches the related expenses with the revenues they help generate. This is in accordance with the matching principle in accrual accounting. For prepaid expenses, this means that the expense is not recognized until the period in which the service or good is actually consumed. Similarly, unearned revenues are not recognized as revenues until the service is performed or the good is delivered.
To override these deferrals means to adjust the timing of when the expenses or revenues are recognized. This might be done to more accurately reflect their realization in accordance with the performance of related services or the consumption of related goods, aligning with financial reporting standards or tax requirements..