Accurals And Prepayments Flashcards
1
Q
How would accruals be defined
A
Expenses related to accounting period that are not yet paid for
2
Q
Where are accruals shown?
A
Statement of financial position
3
Q
True or False: Accurals are a liability
A
True
4
Q
Outline the double entry required for accruals
A
Debit: expense in Statement of financial position
Credit: Accrued expense as liability in statement if financial position
5
Q
Are accrued expenses debit or credit entry
A
They are debit entry in accrual expense acccount
6
Q
Define prepayments
A
Related to future accounting periods that are already paid for
7
Q
Where are prepayments shown
A
Statement of financial position
