What is depreciation, accrual, prepayment?

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Depreciation is the allocation of the cost of an asset over its useful life, accrual is recognizing revenue and expenses when they are incurred, and prepayment is paying for expenses before they are incurred.

Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet over time.
Accrual accounting matches revenue and expenses to the period they are incurred, not when cash is exchanged.
Prepayment is when expenses are paid in advance before they are actually incurred, such as insurance premiums or rent.
Depreciation helps spread out the cost of an asset over its useful life, reflecting its gradual loss of value.
Accrual accounting provides a more accurate picture of a company's financial health by matching revenues and expenses to the period they occur.
Prepayments are recorded as assets on the balance sheet until the expenses are actually incurred.

What is depreciation, accrual, prepayment?

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