Accurals And PrePayment Flashcards
1
Q
What is an accrued Expense
A
2
Q
What is an Prepaid Expense
A
3
Q
What is the rule for accrued Expense For the Income Statement
A
- Add accrued Expense to the trial balance figure when preparing the income statement
4
Q
What is the rule for accrued Expense For the Statement of Financial Position
A
Include Accreued Expense as a Current Liability
-Money you owe for a short amount of time
5
Q
What is the rule for Prepaid Expense For the Income Statement
A
- Minus Prepaid epenses from the trial balance figure whne preparing income statements
6
Q
What is the rule for Prepid Expense For the Statement of Financial Statement
A
Include prepaid as a Current Asset in the statement of Financial Position just the amount prepaid
7
Q
A
