A plumber fixes a leaky pipe in a medical practice late at night on September 23rd. He mails an invoice for services rendered to the medical practice that is received on September 29th and is due by October 14th. A check is written to pay the invoice on October 2nd. Under accrual accounting, what should be the posting date for the repair expense?

Question

Quizplus · Accepted Answer

Under accrual accounting, expenses are recognized when they are incurred, not when they are paid. Therefore, the repair expense should be posted on September 23rd, the date the service was provided.

A Plumber Fixes a Leaky Pipe in a Medical Practice