10 Accruals Flashcards
1
Q
When accrued expenses arise?
A
When expense related to a year was not paid in that year
2
Q
What is DE for accrual exp ? How it affects fin statements?
A
Dr expense
Cr accrual
Accr exp reduces profit and creates liability
3
Q
What is DE for prepaid expense ?
A
Dr prepayment
Cr expense
4
Q
What is DE for accr income ?
A
Dr accrued income
Cr income
5
Q
What is DE for prepaid income ?
A
Dr income
Cr prepaid income
