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What is the difference between prepaids and accruals?

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  • USA,Jersey City
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Prepaid expenses are paid in advance and recorded as assets, while accrued expenses are incurred but not yet paid and recorded as liabilities. Are accrued and prepaid expenses the same? No. They are opposites in timing, prepaid expenses are paid early, accrued expenses are paid later.
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Categories: ACCOUNTING SERVICES
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