Chapter 11 ACCRUALS AND PREPAYMENTS Learning Objectives Accruals Prepayments Accruals • Expenses charged against the profits of a period even though they have not yet been paid fo Prepayment • Payments made in one period but charged to the later period to which they relate Accruals and prepayments Remember Remember that that the the financial financial statements statements are are prepared prepared on on an an accruals accruals basis basis and and that that accruals accruals and and prepayments prepayments are are likely likely to to feature feature in in an an accounts accounts preparation preparation question question ... relate Accruals and prepayments Remember Remember that that the the financial financial statements statements are are prepared prepared on on an an accruals accruals basis basis and and that that accruals. .. prepared prepared on on an an accruals accruals basis basis and and that that accruals accruals and and prepayments prepayments are are likely likely to to feature feature in in an an accounts accounts...Learning Objectives Accruals Prepayments Accruals • Expenses charged against the profits of a period even though they have not