Question on: SS1 Accounting - Meaning of Pre- Payments And Accruals & Distinctions Between Pre-Payment And Accruals

What are pre-payments?

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A

Payments made by a business in advance for goods or services that will be received or consumed in the future

B

Payments made by a business after goods or services have been received or consumed

C

Payments made by a business for goods or services that are not required

D

Payments made by a business for goods or services that have not been received or consumed

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Correct Option: A

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