Raziq uses accrual basis accounting to record his business expenses and revenues. He closes his accounts...

Raziq uses accrual basis accounting to record his business expenses and revenues. He closes his accounts on 31 December every year. Which of the following explains the accrual basis accounting? *

a.All business expenses are recorded when cash has been spent.

b.The pay period for hourly employees ends on 27 December, but the employees continue to earn wages through December 31, which are paid to them on 5th January 2020. The business should not record the wages within the year when the employee earned it.

c.A salesman earns a 10% commission on sales shipped and recorded in December 2019. The commission of RM5,000 is paid in January 2020. The business should record the commission expense in December 2019.

d.Invoice issued to a client for RM10,000 in December 2019 and received in January 2020, should be recorded as part of 2020 income

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ekkarill92 answered 1 year ago

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