Consider the following events for Sophia Incorporated: Under accrual-basis accounting,what is the appropriate day to record the expenses related to the sand volleyball camp?
$$\begin{array} { | l | l | }
\hline \text { April } 5 & \text { Sophia purchas es volleyballs for } \$ 200 \text { on account. } \
\hline \text { April } 6 & \text { Sophia advertises a sand volleyball camp tor } \$ 20 \text { a person. } \
\hline \text { April } 12 & \text { Thirty people sign up for the camp paying a total of } \$ 600 . \
\hline \text { April } 21 & \text { Sophia hosts the sand volleyball camp. } \
\hline \text { April } 23 & \text { Sophia pays for the volleyballs purchased on April } 5 . \
\hline
\end{array}$$
A)April 5.
B)April 12.
C)April 21.

Question

Consider the following events for Sophia Incorporated: Under accrual-basis accounting,what is the appropriate day to record the expenses related to the sand volleyball camp?
$$\begin{array} { | l | l | } 
\hline \text { April } 5 & \text { Sophia purchas es volleyballs for } \$ 200 \text { on account. } \
\hline \text { April } 6 & \text { Sophia advertises a sand volleyball camp tor } \$ 20 \text { a person. } \
\hline \text { April } 12 & \text { Thirty people sign up for the camp paying a total of } \$ 600 . \
\hline \text { April } 21 & \text { Sophia hosts the sand volleyball camp. } \
\hline \text { April } 23 & \text { Sophia pays for the volleyballs purchased on April } 5 . \
\hline
\end{array}$$
A)April 5.
B)April 12.
C)April 21.

Quizplus · Accepted Answer

Under accrual-basis accounting, expenses are recorded when they are incurred, not necessarily when they are paid. The expense related to the sand volleyball camp is incurred on April 21, the day the camp is hosted, as this is when the resources (volleyballs) are used.

Consider the Following Events for Sophia Incorporated: Under Accrual-Basis Accounting,what