expense and revenue account for accruals and pre-payments

1. prepaid expenses

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

1.2. 2)debit balance (current asset)

1.3. 3)good for company = asset

2. unearned revenues

2.1. 1)revenue received in advance

2.2. credit balance (current liabilty

2.3. 3)bad for company = liability

3. accrued expense

3.1. 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

4. accrued revenue

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

4.2. 2)debit balance (curret asset)

4.3. good for company = asset