Under the accrual basis of accounting, expenses are recognized when they are: MCQ with Answer and Explanation

Question

Share Report Error

Under the accrual basis of accounting, expenses are recognized when they are:

A. Approved by management

B. Budgeted

C. Paid in cash

D. Incurred

Answer: Option D

Solution (By JKSSB Mock Tests)

The accrual concept dictates that expenses are recognized when incurred, regardless of when the cash is actually paid.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

The 'Vivad se Vishwas' scheme for direct taxes was enacted to:

A. Increase tax rates

B. Introduce new taxes

C. Settle pending tax disputes by providing waiver of interest and penalty

D. Simplify GST

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
The scheme offers a mechanism to resolve legacy direct tax disputes.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'Group Engagement Partner' is responsible for:

A. Component audit only

B. Tax filing

C. Only his own work

D. Overall group audit opinion and direction, supervision, and performance of the group audit engagement

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
The engagement partner takes overall responsibility.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

Which working capital financing approach uses short-term funds to finance temporary current assets and long-term funds to finance permanent current assets?

A. Conservative Approach

B. Aggressive Approach

C. Matching (Hedging) Approach

D. Zero Working Capital Approach

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
The matching approach synchronizes the maturity of the financing source with the life of the asset being financed.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs