Accrued & Prepayments | Lecture No 03 | Fundamental Of Accounting | PRC Level
Автор: Learning League
Загружено: 2026-01-14
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In this video, we’ll understand Accruals and Prepayments, two important accounting adjustments based on the accrual concept. Accruals are expenses or incomes that have been incurred or earned but not yet paid or received, so they must be recorded in the current accounting period to show true profit. Prepayments, on the other hand, are expenses paid in advance for future periods, so the unused portion is treated as an asset. These adjustments help ensure that financial statements present a true and fair view of business performance.
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