- 1 Marks
FA – May 2024 – L1 – SA – Q11 – Bases of Accounting: Accrual vs. Cash
Describes the accruals concept and its application in accounting.
Question
Which of the following correctly describes the accruals concept in accounting?
A. Expenses are recognised in the statement of profit or loss in the same period as the related sales.
B. Income is recognised in the statement of profit or loss when cash is paid.
C. Sales are recognised in the statement of profit or loss when the related expenses are paid.
D. Expenses are recognised in the statement of profit or loss as they are paid.
E. Income and expenses are recognised in the statement of profit or loss as they arise.
Find Related Questions by Tags, levels, etc.
- Tags: Accounting principles, Accruals Concept, Financial Reporting
- Level: Level 1
- Topic: Bases of Accounting: Accrual vs. Cash
- Series: MAY 2024
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