Prepayments/accruals Flashcards
1
Q
Prepayments
A
When you pay for a good/service before you actually get it
2
Q
Accruals
A
Money earned or spent before it has been paid
3
Q
Where do prepayments appear on a statement of financial position
A
Assets
4
Q
Where do accruals appear on a statement of financial position
A
Liabilities
5
Q
Where do prepayments appear in a comprehensive income statement
A
Expenses
6
Q
Where do accruals appear on a comprehensive income statement
A
Assets or liabilities
