Ask Question
11 October, 06:54

Using accrual accounting, expenses are recorded and reported only: _A. when they are incurred and paid at the same time. B. if they are paid after they are incurred. C. when they are incurred, whether or not cash is paid. D. if they are paid before they are incurred.

+2
Answers (1)
  1. 11 October, 07:14
    0
    C. when they are incurred, whether or not cash is paid.

    Explanation:

    In accrual accounting, expenses are recorded in the moment they are incurred, even if they have not been paid for.

    In fact, the term "accrued expense" means an expense that has been incurred, but not yet paid.

    One common example of an accrued expense is accrued wages:

    Suppose that a firm hires a worker on March 1, for a wage of $1,000 dollars per month, that is due to be paid at the end of the month (March 31). This worker is earning $33 per day. By March 4, the firm should have recorded accrued wages for $132 ($33 x 4 days) even if no payments will be made until March 31.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Using accrual accounting, expenses are recorded and reported only: _A. when they are incurred and paid at the same time. B. if they are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers