Why are expenses items typically accrued at period end, and why
are inventory items always accrued on receipt?

Answer Posted / raghuka

As per Matching Concept all costs which are applicable to
the revenue of the period should be charged against that
revenue in order to determine net income of the business.

Inventory items are always accrued at receipt bcos you
cannot book liability without receiving the asset.

Is This Answer Correct ?    5 Yes 3 No



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