Accrued Expenses
Tutorial One

Scenario:
Mythical received a bill for equipment services after the end of the current accounting period. The bill, in the amount of $3,500, is actually for services that Bingo Equipment Service company performed during the current period. The bill has not been entered into the accounting system.

What accounting principle requires that expenses be recorded in the period in which they are incurred.
Enter your answer as a single word - lower case

: The principle that requires expenses be recognized in the appropriate period


What type of account will be debited in the adjustment?
The answer is a single word (asset, liability, etc.).
Enter your answer as a single word - lower case

: The type of account that would be debited

 

What account would be credited? This one is two words.
Enter your answer using lower case characters.

: The account that would be credited

© Jim Formosa 2002