Thread: What is meant by 'other expenses' & 'accruals'?

It says in my accounting textbook that to calculate payments to other suppliers for a cashflow statement it equals:
Other expenses +/- prepayments +/- accruals

Sounds like you're using the direct method (not the indirect method) for the cash flow statement.

I assume your "other expense" would be "other supplier expense" reflected in the income statement then adjusted for balance sheet changes in the prepaid and accrual categories (ap would be one) as they pertain to this category thus representing total cash payments for the category "other suppliers".

my thoughts exactly,
Jeff Kovalski, CPA