Prepayments and Accruals

The video explains the

difference between prepayments and accruals,
^- and how to identify and record them
- as prepaid expenses,
- deferred revenue,
- accrued expenses, and accrued revenue.

Prepayments

[00:05:15]
When the payment has been done, but the services is yet to be received in the future
To hold them in the balance sheet as

Like, Insurance Expense

[00:07:15]
When services is NOW/PAST received, but the payment hasn't been done yet
To hold them in the balance sheet as: