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3 Cards in this Set
- Front
- Back
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Accrued expense |
- Expense incurred but not paid in cash - Affects OH and current liability - In the next period the accruals will cease to be a liability once it is paid |
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Prepaid expense/prepayment/deferred |
- The amount received in advance, but the economic benefits have not been used or consumed - Will affect cash and another current asset (prepayments) - In the next period the prepayment will cease to be an asset and become an expense in the income statement |
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