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Reporting & leadership
Accruals and prepayments
Accruals record costs incurred but not yet invoiced; prepayments spread costs paid in advance over the periods they cover. Both put costs in the right month.
Owned by: AnalystTest band: Analyst
In practice
The classic close miss: a big invoice arriving on the 5th for last month's work. Accrue it, or last month looks better than it was and this month worse.
The kind of thing the test asks
- A $25k invoice for June consulting arrives on 4 July. The right treatment is…