Consider the following events for Sophia Incorporated:
April 5 $\quad$Sophia purchases volleyballs for $\$ 200$ on account.
April 6$\quad$ Sophia advertises a sand volleyball camp for $\$ 20$ a person.
April 12 $\quad$Thirty people sign up for the camp paying a total of $\$ 600$.
April 21 $\quad$Sophia hosts the sand volleyball camp.
April 23$\quad$ Sophia pays for the volleyballs purchased on April 5.
Under accrual-basis accounting,what is the appropriate day to record the expenses related to the sand volleyball camp?

Question

Consider the following events for Sophia Incorporated: 
April 5 $\quad$Sophia purchases volleyballs for $\$ 200$ on account.
April 6$\quad$ Sophia advertises a sand volleyball camp for $\$ 20$ a person.
April 12 $\quad$Thirty people sign up for the camp paying a total of $\$ 600$.
April 21 $\quad$Sophia hosts the sand volleyball camp.
April 23$\quad$ Sophia pays for the volleyballs purchased on April 5.
Under accrual-basis accounting,what is the appropriate day to record the expenses related to the sand volleyball camp?

Quizplus · Accepted Answer

Under accrual-basis accounting, expenses are recorded when they are incurred, not necessarily when they are paid. The expenses related to the sand volleyball camp should be recorded on April 21, the day the camp is hosted, as that is when the service is provided and the expense is incurred.

Consider the Following Events for Sophia Incorporated: April 5 \quad

Consider the Following Events for Sophia Incorporated:
April 5 $\quad$