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Accounts are drawn up over an accounting period - usually a year. An accrual is a payment physically paid in one period but referring to the previous one. A prepayment is a payment physically paid in one period but referring to the next one.
Let's suppose that your accounting period ends on 31st May. You get a bill for coconuts that were supplied in May, but you don't pay it until June - that is an accrual. You pay for bananas in May but they are not supplied until June - that is a prepayment.
What else can I help you with?
What is difference between accruals and VOWD?
My understanding is Accrual = (VOWD - Actual expenditure)
What are accruals and prepayments?
Accruals: Accruals are those items the benefits of which has already taken by company but the payments are not yet paid or services of which are already provided but amounts are not received yet Example: rent accrued for previous 6 months but not yet paid. Pre payments: Pre payments are reverse of accruals as these are the payments which have made already but the benefits of those payments are not yet taken by the company. For Example: Prepaid rent for next 6 months.
Can you distinguish between the two categories of adjusting entries and identifying the types of adjustments applicable in each category?
Deferral 1 Prepaid Expenses 2. Unearned Expenses Accruals 1. Accured Revenue 2. Accured Expenses
What is difference between advance expenses and prepaid expenses?
i dont have any knowlege.....Nikita Gohil
What is the difference between prepaid rent and rent expense?
Prepaid rent is an asset and represents and advance payment for a future benefit Rent expense is an expense and is the expended portion of the rent consumed.
What is the difference between freight prepaid abroad and freight prepaid?
what is the difference between freight prepaid and freight prepaid abroad
What is difference between accruals and VOWD?
My understanding is Accrual = (VOWD - Actual expenditure)
What is the difference between prepaid and fixed term contract?
Prepaid is the same as fixed term!
What is the difference between gross and net dscr?
Gross DSCR= Cash accruals ( Profit after tax + Depreciation) + Interest ----------------------------------------------------------- Installments of loan + Interest Net DSCR = Cash Accruals (PAT + Depreciation) -------------------------------------- Installments
What are accruals and prepayments?
Accruals: Accruals are those items the benefits of which has already taken by company but the payments are not yet paid or services of which are already provided but amounts are not received yet Example: rent accrued for previous 6 months but not yet paid. Pre payments: Pre payments are reverse of accruals as these are the payments which have made already but the benefits of those payments are not yet taken by the company. For Example: Prepaid rent for next 6 months.
Can you distinguish between the two categories of adjusting entries and identifying the types of adjustments applicable in each category?
Deferral 1 Prepaid Expenses 2. Unearned Expenses Accruals 1. Accured Revenue 2. Accured Expenses
What is difference between advance expenses and prepaid expenses?
i dont have any knowlege.....Nikita Gohil
What is difference between prepaid expenses and deposits?
There isn't much of a difference between a prepaid expense and a deposit. Both terms are monies that are paid in advance to pay for something. With a prepaid expense, the money pays usually for a bill or utility. A deposit on the other hand, is sometimes given back after the obligation is paid. If it is not paid, the deposit is kept as payment.
What is the difference between freight collect and freight prepaid?
freight prepaid is the shipper pays the freight cost and freight collect is the consignee whom burdens for the cost related.
How is an accrued expense adjusted using journal entries?
Adjustment of accrued expenses means to adjust the previously recorded accruals like prepaid expenses or outstanding liabilities etc.
What is the difference between marginal and blended ARPU?
Blended ARPU is comprised of both Postpaid and Prepaid ARPU.
What is the difference between prepaid rent and rent expense?
Prepaid rent is an asset and represents and advance payment for a future benefit Rent expense is an expense and is the expended portion of the rent consumed.
