An expense should be recorded when
A) the bill is paid.
B) the expense is incurred.
C) a bill is received in the mail.
D) None of the above are correct.

Question

Quizplus · Accepted Answer

According to accrual accounting, expenses should be recorded when they are incurred, not when the bill is paid or received in the mail. This means that even if the bill has not been paid yet, the expense should still be recorded in the accounting system.

An Expense Should Be Recorded When