q#14
Using accrual accounting, expenses are recorded and reported only
when they are incurred, whether or not cash is paid ?
when they are incurred and paid at the same time ?
if they are paid before they are incurred ?
if they are paid after they are incurred ?
2006-10-29 01:41:59 · 6 answers · asked by michaeljustussvcc 1 in Business & Finance ➔ Taxes ➔ United States
when incurred, whether or not cash is paid...this is under accrual accounting....I just retired as a college accounting prof....
2006-10-29 01:46:52 · answer #1 · answered by Hank 2 · 2⤊ 0⤋
In accrual accounting, expenses are recognized
when they are incurred, whether or not cash is paid ? yes
when they are incurred and paid at the same time ? yes
if they are paid before they are incurred ? no, they are recorded as prepaid expenses, which falls under assets
if they are paid after they are incurred ? see first question - when you close the books before you pay the expenses, you must record it as a liability. your entry will be debit expenses and credit accounts payable.
2006-10-29 05:08:02 · answer #2 · answered by Kelly 2 · 0⤊ 0⤋
expenses are recorded and reported only (Under Accrual acct)
when they are incurred whether or not cash is paid.
2006-10-29 01:40:23 · answer #3 · answered by san_brj 2 · 1⤊ 0⤋
when they are incurred, whether or not cash is being paid at the time.
2006-10-29 03:33:42 · answer #4 · answered by LD 5 · 0⤊ 0⤋
when incurred. Debit to the expense and credit to either cash (if paid) or an accrued expense (if not paid).
The subsequent payment (if the expense is accrued) is recorded as a debit to the accrued expense liability and a credit to cash.
2006-10-29 03:16:31 · answer #5 · answered by snailbaitforsale 2 · 0⤊ 0⤋
first 2 answers are winners, & i agree w/ them.
2006-10-29 01:56:15 · answer #6 · answered by Dee 4 · 1⤊ 0⤋