Accruals and Prepayments
Principles of Accounts · Secondary 3 · Adjustments to Financial Statements · 3.º Período

Accruals and Prepayments

This topic introduces the matching principle and the need for adjusting entries at the end of the financial year. Students will calculate and record accrued and prepaid expenses and income.

MOE Syllabus OutcomesMOE POA Syllabus 7087, Section 6.5MOE POA Syllabus 7087, Section 6.6

About This Topic

This topic introduces the matching principle and the need for adjusting entries at the end of the financial year. Students will calculate and record accrued and prepaid expenses and income.

Key Questions

  1. What is the matching principle in accounting?
  2. How do accruals and prepayments affect the profit for the year?
  3. How are these adjustments recorded in the ledger?

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