expense and revenue account for accruals and pre-payments

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expense and revenue account for accruals and pre-payments by Mind Map: expense and revenue account for accruals and pre-payments

1. accrued expense

1.1. 1)exp. which the firm has used up but has not yet been paid for 2)credit balance (current liability) 3) bad for company = liability

2. accrued revenue

2.1. 1)revenue earned but not yet received in cash or recorded

2.2. 2)debit balance (curret asset)

2.3. good for company = asset

3. prepaid expenses

3.1. 1)an expense to be used up in a following period but has been paid for in advance

3.2. 2)debit balance (current asset)

3.3. 3)good for company = asset

4. unearned revenues

4.1. 1)revenue received in advance

4.2. credit balance (current liabilty

4.3. 3)bad for company = liability