What are accruals and prepayments?

Answer by  joba1120 (39)

An accrual is an expense that you have not paid for yet, but have received the goods and services for as of year end. A prepayment is the opposite.

Answer by  Kbrece (107)

At year end these represent balance sheet items. Accruals are expenses not yet paid, and prepayments are payments made that have not yet been expensed.