Esther Limited has an accrual for telephone expenses at 1 May 2019. Payments of telephone expenses are made regularly during the year. At 30 April 2020, Esther Limited has an accrual for telephone expenses. Which one of the following calculations will enable Esther Limited to determine the correct telephone expenses charge in the statement of profit or loss for the financial year to 30 April 2020?

Question

Quizplus · Accepted Answer

The correct calculation for the telephone expenses charge is payments made during the year plus the closing accrual (at 30 April 2020) minus the opening accrual (at 1 May 2019).

Esther Limited Has an Accrual for Telephone Expenses at 1