Principles of Accounting: Prepayments and the Financial statements
ZIMSEC O Level Principles of Accounts Notes: Prepayments and the Financial statements
- A prepayment is when an amount is paid before it is due
- In accounting there are two types of prepayments:
- Prepaid expenses and
- Prepaid income
Prepaid expenses
- This is when the business prepays an expense
- Examples are:
- When a business pays rent payable in advance or
- When it […]