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General Expense FormGeneral Expense Form Qxd United

General Expense FormGeneral Expense Form Qxd United

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Instructions and help about General Expense FormGeneral Expense Form qxd United

one of the issues we didn't discuss in the last topic was that of incurred income and expenses let's have a look at this coming back to the example of beck let's say it is the last day of the 2016 financial year and a friend of hers comes along to buy a dress her friend doesn't have the money to pay for it yet so they agreed to settle payment in one month's time sure enough one month later her friend transfers money into beck's business account but there is now a small dilemma which financial year should beck be recording this transaction on the income statement the answer is that the purchase should be recognized on the 2016 financial year's income statement the reason for this is that the accounting system recognizes income or an expense during the period in which a legal obligation is created not when cash moves hands let's consider another example beck has paid her european supplies during the 2016 financial year for n

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