Utilities used for the month but an invoice has not yet been received before the end of the period. Wages that are incurred but payments have yet to be made to employees. Services and goods consumed but no invoice has been received yet. Do you include VAT in prepayments? ARead More →
Here are some examples of deferrals: Insurance premiums. Subscription based services (newspapers, magazines, television programming, etc.) Prepaid rent. Deposits on products. Service contracts (example: cleaners) Tickets for sporting events. What is an example of an accrual? Accrued Expenses The accrual principle of accounting allows an accountant to record expenses incurredRead More →