Definition
Accruals are expenses or revenues that have been incurred or earned but not yet recorded in the accounting records. Accruals are recognized under the accrual basis of accounting, which requires transactions to be recorded when they occur, regardless of when cash is exchanged. Common examples of accruals include accrued interest, accrued salaries, and accrued utilities, which are recorded as liabilities or assets until they are settled or realized. Accruals ensure that financial statements accurately reflect the economic activity of a business during a specific period.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.