Adjusting entries Flashcards
(9 cards)
1
Q
What are the 4 types of prepayments and accruals?
A
Prepaid expenses, Deferred revenue, Accrues revenue and Accrued expenses.
2
Q
Do prepaid expenses affect the buyer or seller?
A
Buyer
3
Q
Does deferred revenue affect the buyer or seller?
A
Seller
4
Q
Do accrued expenses affect the buyer or seller?
A
Buyer
5
Q
Does accrued revenue affect the buyer or seller?
A
Seller
6
Q
What is a prepaid expense?
A
A future expense that has been paid for in advance
7
Q
Are prepaid expenses assets or liabilities?
A
Asset
8
Q
Are deferred revenues assets or liabilities?
A
Liabilities
9
Q
Are accrued expenses assets or liabilities?
A
Liabilities
