Accruals and Prepayment Flashcards
1
Q
A prepayment is shown as an ______________ in the statement of comprehensive income and shown as a _________________ on a statement of financial position.
A
expense
current asset
2
Q
An accrual is the amount of money that has been __________________, but __________________.
An accrual is shown as a ___________________ in a
statement of comprehensive income.
A
earned or spent
not yet paid
current liability
3
Q
What are 3 uses of a statement of comprehensive income:
1.
2.
3.
A
- Comparing between years.
- Comparing to competitors
- Comparing performance of different departments.
4
Q
What is profit quality?
A
How sustainable the profit is.
