a. Outstanding expenses: These refer to those expenses which belong to and are incurred in the current accounting ** but are left unpaid. In other words, we can say that the services in exchange of these payments have been realized but the payments are not made.
b. Prepaid expenses: These refer to those expenses for which the benefits have not been realized by the payments have already been made in advance. These are basically the advance payments for the next year, which are made in the current accounting **.
c. Income Received in Advance: This refers to the income received whose actual realisation of benefits will occur in the next accounting **. These are also called unearned incomes.
d. Accrued Income: This refers to those incomes which have been earned during an accounting ** but have not been actually realised in the current **. These are also called earned incomes.
