Question
If a business pays its expenses immediately can they still be accrual basis?
Answers
Ms. Sue
Apparently, yes.
http://www.investorwords.com/61/accrual_basis_accounting.html
http://www.investorwords.com/61/accrual_basis_accounting.html
Ashley
Thanks Ms. Sue. Your help is much appreciated.
Ms. Sue
You're very welcome, Ashley.
Ashley
Would you happen to know Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR),
accrued expenses (AE), or accrued revenues (AR).
a. To record revenue earned that was previously received as cash in advance.
b. To record annual depreciation expense.
c. To record wages expense incurred but not yet paid (nor recorded).
d. To record revenue earned but not yet billed (nor recorded).
e. To record expiration of prepaid insurance
accrued expenses (AE), or accrued revenues (AR).
a. To record revenue earned that was previously received as cash in advance.
b. To record annual depreciation expense.
c. To record wages expense incurred but not yet paid (nor recorded).
d. To record revenue earned but not yet billed (nor recorded).
e. To record expiration of prepaid insurance