Prepayments and Accruals

Prepayments and Accruals

Prepayments and accruals are the items used to adjust the accounts at the balance day before reports are prepared. Because of the difficulty, this is a hard topic for accounting students.

This infographic explains the four types of prepayments and accruals.

Prepayments and Accruals

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26

Mar'18

What are Prepayments and Accruals?

What are Prepayments and Accruals? Prepayments and accruals adjust financial accounts at the balance day for amounts that cross-over the end of the financial period. An example is an expense that the business will get benefit from in the next financial period. This could be an insurance premium that is …

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10

Jan'18

What are Adjustments?

What are Adjustment entries? What is an Adjusted Trial Balance? Accounting adjustments are journal entries or adjusting entries. They are prepared to adjust and close off the ledger account balances. The accounting ledgers are then ready for the final reports to be prepared for the ‘balance day‘ of the end …

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