6.1 …… entries occur because the accountant needs to make the reporting entity’s financial statements show a true and fair view of the income and expenses.
6.2 Accounting for ……. and …… is essential to ensure that the amount of income and expense is appropriately recorded using the accrual basis of accounting.
6.3 …… and ….. help users to correctly estimate trade receivables’ accounting information.
6.4 An expense is deemed …… when there is a delay between the time it is due for payment and when it is paid by a business entity.
6.5 Accrued expenses at the year-end are ……. to the actual expenditure during the year.
6.6 In the statement of financial position, accrued expenses are classified as ………
6.7 An income is deemed accrued when there is a ……. between the time it is due to be received and when a business enterprise receives it.
6.8 At the accounting year end, accrued income is …….. as a current asset in the statement of financial position.
6.9 An expense is deemed ……. when paid before it becomes due for payment by a reporting entity.
6.10 In the statement of financial position, a reporting entity classifies prepaid expenses at the end of the accounting period as ………….
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