Which statements about accruals and prepayments are correct?
1 Accrued revenue at the end of an accounting period is recorded as a current asset.
2 Accrued revenue at the end of an accounting period is recorded as a current liability.
3 Prepaid expenses at the end of an accounting period are recorded as a current
asset.
4 Prepaid expenses at the end of an accounting period are recorded as a current
liability.
1 and 3
2 )
1 and 4
3 )
2 and 3
4 )
2 and 4
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