Differentiate between Prepayment Expenses and Accruals?

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Young & jamison's modified cash-basis financial statements indicate cash pai...
Posted by:
Mahmoud Mansour
10-October-2013

Accounting and Finance

Question added by Adeniyi Mustapha Bameyi , Compliance and Conduct Monitoring and Reporting Officer , Wema Bank
Date Posted: 2016/03/10

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by Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC

The main differentiate is prepayment is the expenses paid but not booked, and accruals is expenses booked but not paid.

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