Harry Company uses cleaning supplies on a daily basis.Under the accrual basis of accounting these supplies would be an expense of the period in which they are:

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, expenses are recognized when they are incurred, regardless of whether or not they have been paid for. For cleaning supplies, the expense is incurred when they are used, as this is the point at which they have been consumed to generate revenue for the company. Therefore, the correct choice is D (Used).

Harry Company Uses Cleaning Supplies on a Daily Basis