Accruals and prepayments

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Accruals and prepayments by Mind Map: Accruals and prepayments

1. accrued expenses

1.1. an expense which the firm has used up,but has not yet paid for credit balance

1.1.1. current liability Example: wages earned by employees but not paid yet

2. accrued revenue

2.1. revenue earned but not yet received in cash

2.1.1. current asset Example: credit sales

3. prepaid expenses

3.1. an expense to be use in the following period but has been paid in advanced

3.1.1. current asset Example: prepaid rental, prepaid telephone bills

4. prepaid revenue

4.1. revenue received in advanced

4.1.1. current liability Example: rent payment received in advanced