Hannah Ltd uses gardening supplies on a daily basis. Under the accrual method of accounting these supplies would be an expense of the period in which they are:

Question

Quizplus · Accepted Answer

According to the accrual method of accounting, expenses are recognized when they are incurred, or when they are used, regardless of when they are ordered, received, or paid for. Therefore, in the case of gardening supplies, they would be recognized as an expense of the period in which they are used by the company.

Hannah Ltd Uses Gardening Supplies on a Daily Basis