Accountıng Iı Deneme Sınavı Sorusu #1036182

When an expense incurs but is not paid yet, how should it be recorded?


As accounts payable

As notes payable

As short term bank loans

As accruals

As unearned revenues


Yanıt Açıklaması:

Matching principle requires the recognition of expenses in the period in which they incur to generate revenues. Therefore, as of the end of period, all expenses should be recorded independent from whether they are paid or not. When an expense incurs but is not paid yet, it should be recorded as accrued expense. In other words, accruals can be defined as liabilities for unpaid expenses. The most common examples of accrued expenses are interest payable, salaries payable, income taxes payable etc. The correct answer is D.

Yorumlar
  • 0 Yorum