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متابعة

Expenses paid in advance require what type of adjusting entry?

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تم إضافة السؤال من قبل Mehboob Ali Laghari , Social Mobilization Team Incharge , TRDP-European Union
تاريخ النشر: 2015/08/08
Muhammad Adil
من قبل Muhammad Adil , Manager Accounts , Gul Ahmed CG Limited

When expenses have incurred and have to pay it will be recorded as accrued expenses. When expenses not incurred and paid in advance, it will be treated as your current asset and would be accounted for on deferral basis.

Ahmed Abdi Mahad
من قبل Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

Deferred expense is deferred asset and accrued expense is accrued liability. So, expense paid in advance is deferred asset. So, choice #2, deferral is the answer for this question.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

2. Deferral ..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imdad Hussain Rajput
من قبل Imdad Hussain Rajput , Assistant Sales Manager , Forego

Deferral.........................................................

Said Shaban
من قبل Said Shaban , Accountant , Tri State Materials Testing

The correct answer is:  2- Deferral

Cash paid before expense is incurred: Deferred expense .

 

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