Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 9 - No. 25)
In the context of adjusting for accrued expenses, what is the primary objective?
To record cash payments for expenses.
To ensure expenses are recognized in the period they are paid.
To ensure that expenses are recorded in the period they benefit the business.
To delay the recognition of expenses until the following accounting period.
Explanation
The primary objective is to match expenses with the revenues they help generate in the correct accounting period, which is the period they benefit the business.
Comments (0)
