Under the accrual method of accounting, an expense is recorded at which of the following times?
A) When the expense is incurred
B) When payment for the expense is made
C) At the end of the accounting period
D) At both A and C

Question

Quizplus · Accepted Answer

Under the accrual method of accounting, an expense is recorded when it is incurred, regardless of when payment is made. This method matches expenses with the revenues they help to generate within the same period.

Under the Accrual Method of Accounting, an Expense Is Recorded