Series: Subject: Topic:
Question: 108 of 185

What is meant by accrual basis.

How does it works? Where does it works? What is the journal entry for that. Where it comes in the final account?
Asked by: Interview Candidate | Asked on: Sep 25th, 2007
Showing Answers 1 - 1 of 1 Answers

Answered On : Nov 23rd, 2007

Accurual basis means recognising the expenses/income which is accrued to the period.But the actual expenditure is not,there is no outflow of cash.say for example rent for the month of march is paid in april but at year end closing the rent which is not paid is recognised as expense since it relates to the period.This is accrued expenses.

Yes  3 Users have rated as useful.
Login to rate this answer.

Give your answer:

If you think the above answer is not correct, Please select a reason and add your answer below.

Related Open Questions



twitter fb Linkedin GPlus RSS


Interview Question

 Ask Interview Question?


Latest Questions

Interview & Career Tips

Get invaluable Interview and Career Tips delivered directly to your inbox. Get your news alert set up today, Once you confirm your Email subscription, you will be able to download Job Inteview Questions Ebook . Please contact me if you there is any issue with the download.