What is the effect of not reconciling the expense accounts?If there is a credit adjustment in the expense account with no supporting documentations, what is the financial statement impact?

  • Interview Candidate
  • 4
  • 3207

Showing Answers 1 - 4 of 4 Answers

maaz01

  • Sep 16th, 2008
 

If the company is being reimbursed by another organization for the expense incurred earlier then it will be a credit to the expense account. If the expense was over accrued and the actual is lower than the accrual then it will be reversing entry reducing the expense.

  Was this answer useful?  Yes

Anoop Kapoor

  • Mar 31st, 2009
 

Without reconciling the expense account it will increase the expense account & it will reduce the profits and worthiness of the organisation will not reflect true position and Similarly without credit adjustment the expense account also not accounted fully . To pass any entry in accounts we need supportings for the base of the entry. And if we pass credit adjustment it will enhance our profit and again it reflects vague position of the firm.

  Was this answer useful?  Yes

Give your answer:

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

 

Related Answered Questions

 

Related Open Questions