Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 15 - No. 40)
What does it mean to 'accrue' an expense?
To record an expense when cash is paid.
To estimate and record an expense in the period it is incurred, even if not yet paid.
To record an expense at the end of the accounting period.
To record a prepayment for the upcoming period.
Explanation
Accruing an expense means recognizing it in the period it was incurred, regardless of payment.
Comments (0)
