Most accounting policy choices affect both the income statement and the balance sheet.Select the income statement account(s)that would be affected by a policy choice at the same time as the accrued expenses balance sheet account.

Question

Quizplus · Accepted Answer

Accrued expenses are expenses that have been recognized on the income statement but have not yet been paid for, resulting in a balance on the balance sheet. By choosing a different accounting policy for these expenses, various expense accounts on the income statement could be affected. Therefore, the best choice is D.

Most Accounting Policy Choices Affect Both the Income Statement and the Balance