Which One of the Following Statements Is Correct

Multiple Choice

Which one of the following statements is correct?

A) Prepayments are included as part of liabilities in the statement of financial position.
B) Accruals are included as part of liabilities in the statement of financial position.
C) Accruals reduce the amount of expenses for inclusion in the statement of profit or loss.
D) Prepayments reduce the amount of expenses for inclusion in the statement of profit or loss.