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Thank you so much for previous answers!!!
If the question states that we have a deferred payment to make next year for the purchase then it means money is paid in future?
If the question stated that we have a deferred income to be received next year for the investment then it means money is received in future?
In deferred consideration scenarios we need to discount the future money (either to be paid or received) by using discounting approach because we record balances on present value in our financial statements not at tye future value – correct?
Lastly, prepayment is not related to any of the cases but accruals is related to the cases (1) and (2) that i asked you in my first question here (https://opentuition.com/topic/accounting-question-2/)
Bless you!
The first two statements are true.
As far as your third statement is concerned, discounting is not examinable in any form in Paper FA.
If ou are studying for Paper FA, then again everything relevant for the exam is covered in my free lectures. (If you are not studying for Paper FA then I do not know why you are asking in this forum).
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