Test your knowledge of double entry bookkeeping with our accruals and prepayments quiz.
Accruals and prepayments are needed in bookkeeping to ensure that financial statements satisfy the matching concept. At the end of an accounting period, accruals and prepayments need to be calculated, and journal entries prepared to record the adjustments in the relevant accounts.
Accruals or accrued expenses are expenses which relate to the current accounting period but which have not yet been paid for. Prepayments or prepaid expenses are expenses which relate to a future accounting period but which have already been paid.
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Try Another Double Entry Bookkeeping Quiz
The accruals and prepayments quiz is one of many of our online quizzes which can be used to test your knowledge of double entry bookkeeping, discover another at the links below.
- Quiz 23: Cash Flow Statement
- Quiz 38: Accounting Basics Quiz
- Quiz 28: Payroll Test
- Quiz 18: Debit Credit Accounting Quiz
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.