An expense incurred/used up in 2020 is not paid until 2021. Using the accrual basis of accounting, the expense should be reported on: A. both the 2020 and 2021 Income statements B. the 2020 Income statement C. the 2021 income statement D. neither the 2020 nor 2021 Income statements

An expense incurred/used up in 2020 is not paid until 2021. Using the accrual basis of accounting, the expense should be reported on: A. both the 2020 and 2021 Income statements B. the 2020 Income statement C. the 2021 income statement D. neither the 2020 nor 2021 Income statements

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 7DQ

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Question

An expense incurred/used up in 2020 is not paid until 2021. Using the accrual basis of accounting, the expense should be reported on:

A. both the 2020 and 2021 Income statements
B. the 2020 Income statement
C. the 2021 income statement
D. neither the 2020 nor 2021 Income statements

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