An expense incurred in 2019 is not paid until 2020. Using the accrual basis of accounting, the expense should appear on:

Name: An expense incurred in 2019 is not paid until 2020. Using the accrual basis of accounting, the expense should appear on:
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Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, expenses are recognized when they are incurred, not when they are paid. Therefore, an expense incurred in 2019 should be recorded on the 2019 income statement, regardless of when it is paid.

An Expense Incurred in 2019 Is Not Paid Until 2020