Day: September 3, 2020

Why should accrued expenses be shown in the financial statements of a business?

Select ONE answer:

1. so that the correct total of current assets is shown in the statement of financial position
2. so that the total income of a period is matched against the total costs of that period
3. to show how much customers owe the business
4. to show the amount owed to credit suppliers

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – the accruals principle
3. Not correct
4. Not correct

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