A company orders office supplies in June.Those supplies are received and paid for in July.The supplies are used in August.In which month should the company record supplies expense?

Question

Quizplus · Accepted Answer

The supplies were actually used in the month of August, so the expense should be recorded in August, when the expense was incurred. This is known as the "matching principle" in accounting, which states that expenses should be matched with the revenues they help generate in the same accounting period.

A Company Orders Office Supplies in June