An expense incurred in 2011 is not paid until 2012. Using the accrual basis of accounting, the expense should appear on:

Name: An expense incurred in 2011 is not paid until 2012. Using the accrual basis of accounting, the expense should appear on:
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Question

Quizplus · Accepted Answer

With the accrual basis of accounting, expenses should be recognized when they are incurred, regardless of when they are paid. Therefore, the expense incurred in 2011 should appear on the 2011 income statement, even if it is not paid until 2012.

An Expense Incurred in 2011 Is Not Paid Until 2012