Quick questions on Accruals and prepayments: matching income and expenses to the period - AQA A-Level Accounting

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?

Show answer

Insurance of

6{,}000

was paid, but

1{,}500

relates to next year. State the income statement charge. [2 marks]

6{,}000 - 1{,}500 = 4{,}500

(the

1{,}500

is a prepaid current asset).

What is q2?

Show answer

How is income received in advance shown in the statement of financial position? [1 mark] As a current liability.

Have a question we have not covered?

This dot-point answer is short enough that we have not extracted many short questions yet. Read the full dot-point answer or ask Mo, our study assistant, in the chat for follow ups.

All AccountingQ&A pages