Year-end adjustments: accruals, prepayments, irrecoverable debts and provisions.
The accruals (matching) concept records expenses/income when incurred/earned, not when paid/received.
Accruals and prepayments
Accrued expense — owed but unpaid: add to the expense; a current liability.
Prepaid expense — paid in advance: deduct from the expense; a current asset.
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