The following events pertain to Jasper Corporation: Using cash-basis accounting, on which date should Jasper record supplies expense?

Name: The following events pertain to Jasper Corporation: Using cash-basis accounting, on which date should Jasper record supplies expense?
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

The following events pertain to Jasper Corporation:  Using cash-basis accounting, on which date should Jasper record supplies expense?

Quizplus · Accepted Answer

According to cash-basis accounting, expenses are recorded when cash is paid. Therefore, supplies expense should be recorded on May 9, when Jasper purchased the supplies and paid cash for them.

The Following Events Pertain to Jasper Corporation: Using Cash-Basis