7. Accounting for accruals and prepayments Flashcards Preview

CIMA C02 Financial accounting > 7. Accounting for accruals and prepayments > Flashcards

Flashcards in 7. Accounting for accruals and prepayments Deck (4)
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1
Q

Accrued expenses

A

DR expense account SPL (reduction in profit)

CR accrual account SFP (current liability)

2
Q

Prepaid expenses

A

DR prepayment account SFP (current asset)

CR expense account SPL (increase in profit)

3
Q

Accrued income

A

DR accrued income SFP (current asset)

CR sales revenue SPL (increase in profit)

4
Q

Prepaid income

A

DR sales revenue SPL (reduction in profit)

CR prepaid income SFP (current liability)